Choice Broking maintains outperform rating on Infosys

Choice Equity Broking has outperform call on Infosys with a target price of Rs 1807. The current market price of Infosys is Rs 1503.65.

Infosys, incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 621685.48 Crore) operating in IT Software sector.

Infosys key Products/Revenue Segments include Software Development Charges and Software Products for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 39087.00 Crore, up 5.29 % from last quarter Total Income of Rs 37122.00 Crore and up 20.72 % from last year same quarter Total Income of Rs 32379.00 Crore. Company has reported net profit after tax of Rs 6586.00 Crore in latest quarter.

The company’s top management includes Mr.Nandan M Nilekani, Mr.Salil Parekh, Ms.Kiran Mazumdar Shaw, Ms.Chitra Nayak, Mr.D Sundaram, Mr.Michael Gibbs, Mr.Uri Levine, Mr.Bobby Parikh. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 421 Crore shares outstanding.

Investment Rationale
Based on management's expectation on the EBIT margins to be at the lower end of the 21-22%, the brokerage lowers its EPS estimates by 70bps for FY23-25 post the current quarters performance.

Promoter/FII Holdings
Promoters held 15.16 per cent stake in the company as of 30-Sep-2022, while FIIs owned 31.72 per cent, DIIs 32.06 per cent.