Stocks to Buy Today: On 20 September 2023, the financial services firm Sharekhan published the latest research report on Infosys shares, assigning a ‘buy’ rating to the stock. The comprehensive analysis also provides valuable insights into the company’s financial health.
Sharekhan is Bullish on Infosys and has recommended a ‘buy’ rating on the stock with a target price of Rs 1690. Let’s take a closer look at their recommendations for the Infosys share price target set by Sharekhan.
Sharekhan’s Research Report: Infosys Share
In a recent research report, Sharekhan has upgraded its rating for Infosys to ‘Buy’ from ‘Reduce’, with a revised price target (PT) of Rs. 1,690. The upgrade comes on the heels of Infosys’ recent mega-deal wins, which have significantly improved the company’s growth visibility. The revised PT reflects a slightly better multiple and a rollover of the PE multiple to the EPS estimate for 25 September 2025.
Infosys has been reporting robust deal momentum, particularly in the July-September 2023 quarter, with a few large and mega deals ranging from $1.5 to $2 billion. The IT major is expected to benefit largely from the likely recovery in highly impacted verticals such as Banking, Financial Services and Insurance (BFSI), Communication, and Hi-tech in the upcoming quarters. A case in point is the company’s recent deal win with an MNC telecom company, valued at $1.6 billion.
Despite the prevailing uncertain macroeconomic environment, marked by cuts in discretionary spending and project delays, Infosys and TCS have shown remarkable resilience. Their deal Total Contract Value (TCV) grew by 35% and 24% year-on-year, respectively. The report anticipates a gradual pickup in discretionary spending from CY24 as global uncertainties begin to wane.
Infosys’ diversified presence across geographies, well-spread revenue streams across various verticals, and a sharp focus on strategic clients position it well to win large deals and defend its market share. The company’s stock currently trades at 21.6x and 19.1x its estimated EPS for FY25 and FY26, respectively.
Sharekhan’s report also introduced earnings estimates for FY26 and fine-tuned the earnings estimates for FY25. The brokerage expects an 8.6% and 10.2% Sales and Profit After Tax (PAT) Compound Annual Growth Rate (CAGR) over FY23-26E for Infosys.
Company Details
| Market Cap | Rs. 6,18,379 crore |
| 52-Week High/Low | Rs. 1,672 (High) / Rs. 1,215 (Low) |
| NSE Volume (No of shares) | 73.42 lakh shares |
| BSE Code | 500209 |
| NSE Code | INFY |
| Free Float (No of shares) | 359.9 crore shares |
Company Shareholding
| Promoters | 14.9% |
| Foreign Institutional Investors (FII) | 33.4% |
| Domestic Institutional Investors (DII) | 34.6% |
| Others | 17.0% |
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