Comments
Shares of India's No.2 software services exporter, Infosys Ltd, jumped as much as 5.1 per cent to Rs 1,384.40, and the brokerages are upbeat on the company’s growth prospects.
The company shares ended up by 1.83 per cent at Rs 1,333.05 on the BSE.
Infosys had on Friday reported 3.7 per cent growth in consolidated net profit at Rs 3,612 crore for the quarter ended June 30, 2018, compared with Rs 3,483 crore in the year-ago period. Revenue from operations grew 12 per cent to Rs 19,128 crore in the April-June quarter compared with Rs 17,078 crore in the year-ago period.
Infosys has maintained revenue growth outlook at 6-8 per cent in constant currency terms for fiscal 2019. It had also maintained FY 2018-19 operating margin guidance in the range of 22-24 per cent.
Infosys board has approved issuance of one free share for every share held (that is a 1:1 bonus issue).
“The board in its meeting...has considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined,” the company had said in a regulatory filing on Friday.
“While performance has been slightly underwhelming, improving deal momentum, client mining and rising digital success are indicators that positive change is underway,” CLSA analysts say. The brokerage has retained “buy” rating with unchanged price target.
Revenue growth was marginally lower than expected, but margin was in line, Morgan Stanley analysts say. It has retained “overweight” rating, and has raised the price target to Rs 1,450 from Rs 1,360.
“Highlights were positive commentary on demand outlook, continued trajectory in large deal wins, and possible return of growth in the US banking vertical,’’ Morgan Stanley adds
Jefferies expect recovery in growth for Infosys over FY19-21 helped by stability in management and renewed focus on execution, especially around winning large digital deals. It has retained “buy” rating, and raised the price target to Rs 1,485 from Rs 1,340.
Infosys stock had gained 35.9 per cent this year as of last close.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.