Infosys share price tanked 4.46% to Rs 1,400 during the early trade on Friday, a day after the IT giant announced a 3.2% growth in its second-quarter net profit to Rs 6,212 crore year-on-year. The company’s revenue from operations in the July-September quarter jumped 7.5% year-on-year to Rs 11,963 crore from Rs 11,126 crore. The company also announced an interim dividend of Rs. 18 per equity share. The stock price of Infosys has fallen 3.67% in the last 5 days, and 5.11% in the last one month, while it has gained 2.47% in the last six months and 0.29% in the last one year.
Should you buy, sell or hold Infosys shares?
Jefferies: BUY – Target Price : Rs 1,650
“Infosys’ 2Q growth and margins beat estimates and net new order book of $3.7 billion was impressive, yet management cut FY24 growth guidance by 100bps to 1.0-2.5% YoYcc citing slowdown in discretionary spends and delays in projects starts. While we cut estimates for FY24 by 1.5%, strong deal wins provide comfort on our expectation of 10% EPS CAGR over FY23-26. With stock trading at 5-yr avg. levels, we maintain BUY with rolled-over Target Price of Rs 1,650.”
Choice broking: ADD – Target Price: Rs 1,655
“Significant large deal wins lay a robust foundation for the company’s future growth. The increasing adoption of the Generative AI solution, Topaz, is playing a crucial role in delivering consistent value and expanding market presence. Major deal wins and focus on cost optimization boosts confidence in the long-term growth prospects. We have introduced FY26E and expect Revenue/EBIT/PAT to grow at a CAGR of 6.2%/10.1%/9.7% respectively over FY23-FY26E. We maintain our ADD rating with a revised target price of Rs 1,655 implying a PE of 24x (unchanged) on FY26E EPS of Rs 76.9.”