Buy Infosys, target price Rs 2300: ICICI Direct

ICICI Direct has buy call on Infosys with a target price of Rs 2300. The current market price of Infosys Ltd. is Rs 1815.

Time period given by analyst is one year when Infosys Ltd. price can reach defined target.

Infosys Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 761237.88 Crore) operating in IT Software sector.


Infosys Ltd. key Products/Revenue Segments include Software Development Charges and Software Products for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 32379.00 Crore, up 7.48 % from last quarter Total Income of Rs 30126.00 Crore and up 22.01 % from last year same quarter Total Income of Rs 26538.00 Crore. Company reported net profit after tax of Rs 5822.00 Crore in latest quarter.

Investment Rationale
Infosys is expected to register 3.0% QoQ growth in CC led by momentum from financial services, retail, communication, energy and manufacturing. Cross currency headwinds would lead to 2.7% QoQ growth in dollar term. Rupee revenues to increase by 3.0% QoQ. EBIT margins are expected to contract 30 bps QoQ due to increase in employee costs. PAT is expected to improve 1.9~% QoQ. Investor interest: some colour on demand environment in FY23E with guidance on revenue and margin for the next year, vertical wise commentary, ramp up of Daimler deal, traction in digital technologies and pricing environment

Promoter/FII Holdings
Promoters held 13.12 per cent stake in the company as of 31-Dec-2021, while FIIs owned 33.17 per cent, DIIs 16.31 per cent.