Not much upside seen in Infosys: Pankaj Pandey

Pankaj Pandey, Head Of Research, ICICI Direct in an interview with ET Now talks about Infosys.

Infosys itself this time around Q4 expected to be tepid, rupee stays just about 5% higher, dollar revenues about 4% higher, margins expected to contract a little bit, do you believe that the markets are factoring this in?

Well yes, I think that probably Q4 is going to be soft for top tier IT companies. We are expecting about 3% kind of a dollar revenue growth for Infosys, about 4% for TCS, about 4.5% for HCL Tech, and about 2.5% for Wipro. So compared to last quarter the numbers could be bit soft.

What we are also expecting is that the Infosys will not give a really loud guidance in terms of growth. Last year they had credit for a 16% to 18% kind of a growth. Probably this year the guidance should be about 16.5% to 18.5%. But last year compared to the guidance they would be delivering in about 26% kind of a top line growth in FY11 and if you look at consensus were already at an EPS of about 150 and revenue growth of about 23%.

So there is limited room for a positive surprise in terms of stock. So given that we have a target price of about 3350 so not much of a upside is what we would be looking at in Infosys.