Emkay starts coverage on Infinite with 'buy'

Emkay Global Financial Services has initiated coverage on Infinite Computer Solutions with a "buy" rating and a target price of 270 rupees. In a note, the brokerage said valuations are attractive and warrant a re-rating given 40 percent discount to mid-tier peers.

Emkay expects earnings per share of the company to growth 26 percent over FY10 to FY13. "A number of large deals with marquee client names like Motorola, ACS and iYogi etc lend strong revenue visibility for Infinite," it said.

However, a lower-than-expected revenue trajectory and higher-than-expected US$/INR appreciation could be a threat to the target price, Emkay added.