Bullish on Infosys as good earnings growth will lead to re-rating: ICICI Securities

In a chat with ET Now, Ravi Muthukrishnan, Co-Head Research, ICICI Securities, shares his views on Infosys. Excerpt:

ET Now: Your top pick for 2014 is Infosys. What makes you bullish on Infosys?

Ravi Muthukrishnan: We like Infosys as most of the earning expectations are still not in the price.

We have seen some surprise, in terms of revenues, this quarter and we have seen some surprise also in terms of earnings.

The management has moved from being cautiously optimistic to talking of firm improvements and their revenue growth numbers have been pretty good.

Hence, there are two things which can go Infosys’ way: One is that the earning numbers can surprise in the near term and second, you could potentially also see a re-rating in that stock.

Therefore, we have a target price of about Rs 4065, which is a 10 per cent upside from the current levels.