Add Infosys, target price Rs 2,015: HDFC Securities

HDFC Securities has an add call on Infosys with a target price of Rs 2015. The current market price of Infosys Ltd. is Rs 1797.6. Infosys Ltd., incorporated in 1981, is a Large Cap company with a market cap of Rs 745704.81 crore, operating in IT the Software sector.

Infosys' key products/revenue segments include Software Products and Software Development Charges for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 42623.00 crore, up 2.22% from last quarter Total Income of Rs 41698.00 crore and up 7.61% from last year same quarter Total Income of Rs 39610.00 crore. The company has reported net profit after tax of Rs 6822.00 Crore in latest quarter.

The company's top management includes Mr.Nandan M Nilekani, Ms.Helene Auriol Potier, Mr.Bobby Parikh, Ms.Chitra Nayak, Mr.Govind Iyer, Mr.Michael Gibbs, Mr.D Sundaram, Mr.Salil Parekh, Mr.Nandan M Nilekani, Mr.Nitin Paranjpe, Ms.Helene Auriol Potier, Mr.Bobby Parikh, Ms.Chitra Nayak, Mr.Govind Iyer, Mr.Michael Gibbs, Mr.D Sundaram, Mr.Salil Parekh, Mr.Nitin Paranjpe. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2024, the company has a total of 415 Crore shares outstanding.

Investment Rationale
The current quantum of large deal run-rate has seen growth progression ranging from 15% growth (FY23) with discretionary support and 2% (FY24) in a tighter environment. Infosys' growth is expected to recover gradually from 1.4% CC in FY24 to 5% in FY25E and 7/8% in FY26/27E?implying a CQGR of 1.7/2.3/1.9% forFY25/26/27E. HDFC Securities' has factored EBITM of 21%, 21.5%, and 22% for FY25E, FY26E and FY27E respectively, translating to an EPS CAGR of 11% over FY24-27E.

Promoter/FII Holdings
Promoters held 14.43 per cent stake in the company as of 30-Sep-2024, while FIIs owned 33.28 per cent, DIIs 37.76 per cent.