LIC ups stake in Infosys, FIIs reduce exposure during Q4
According to the latest shareholding data available with the exchanges, foreign investors have marginally reduced their stake to 35.08% at the end of the March quarter from 36.28% as of December 2022. Despite the cuts, Infosys has one of the highe...
By Akash Podishetti, |
iStock
State-owned insurer Life Insurance Corp (LIC) has increased its stake in IT major Infosys, while foreign portfolio investors (FPIs) have reduced their exposure in the company during the March quarter.
LIC bought 1.68 crore shares of Infosys during the March quarter, raising its holding to 8.19% as against 7.71% at the end of the December quarter.
According to the latest shareholding data available with the exchanges, foreign investors have marginally reduced their stake to 35.08% at the end of the March quarter from 36.28% as of December 2022. Despite the cuts, Infosys has one of the highest foreign holdings on the Street.
Among the public shareholders, apart from LIC, mutual funds have a combined holding of 18.28%, while retail investors own 13% stake in the company.
The index heavyweight has disappointed the Street with its March quarter results as it reported a sequential decline in constant currency revenue and offered subpar guidance.
Following the weak results, the IT stock was hammered by a series of downgrades from brokerages across the spectrum. Jefferies said that the company’s FY24 guidance suggests a weak demand outlook and therefore cut its FY24-25 estimates by 3-6%.
Nomura has downgraded Infosys to Neutral with a price target of Rs 1,290. The brokerage firm said that guidance and deal wins indicate a weak outlook for the company.
HDFC Securities cut its estimates by 4-5% and downgraded Infosys to 'add' from an earlier 'buy' stance. It has revised the target price to Rs 1,470 which is based on 21X December-24E (25X earlier).
Bengaluru-based Infosys reported an 8% growth in its net profit at Rs 6,128 crore, while revenue from operations jumped 16% to Rs 37,441 crore. Both revenue and profit figures were below the analysts' estimates.
The operating margins during the quarter were also under pressure at 21% during the reporting quarter.
On Tuesday, shares of Infosys were trading marginally higher at 0.11% at Rs 1,259.65 on NSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
LIC bought 1.68 crore shares of Infosys during the March quarter, raising its holding to 8.19% as against 7.71% at the end of the December quarter.
According to the latest shareholding data available with the exchanges, foreign investors have marginally reduced their stake to 35.08% at the end of the March quarter from 36.28% as of December 2022. Despite the cuts, Infosys has one of the highest foreign holdings on the Street.
Among the public shareholders, apart from LIC, mutual funds have a combined holding of 18.28%, while retail investors own 13% stake in the company.
The index heavyweight has disappointed the Street with its March quarter results as it reported a sequential decline in constant currency revenue and offered subpar guidance.
Following the weak results, the IT stock was hammered by a series of downgrades from brokerages across the spectrum. Jefferies said that the company’s FY24 guidance suggests a weak demand outlook and therefore cut its FY24-25 estimates by 3-6%.
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Nomura has downgraded Infosys to Neutral with a price target of Rs 1,290. The brokerage firm said that guidance and deal wins indicate a weak outlook for the company.
HDFC Securities cut its estimates by 4-5% and downgraded Infosys to 'add' from an earlier 'buy' stance. It has revised the target price to Rs 1,470 which is based on 21X December-24E (25X earlier).
Bengaluru-based Infosys reported an 8% growth in its net profit at Rs 6,128 crore, while revenue from operations jumped 16% to Rs 37,441 crore. Both revenue and profit figures were below the analysts' estimates.
The operating margins during the quarter were also under pressure at 21% during the reporting quarter.
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On Tuesday, shares of Infosys were trading marginally higher at 0.11% at Rs 1,259.65 on NSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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