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<ul><li><keyword id="620690" type="General" weightage="20" keywordseo="Infosys-share-price" source="Orion">Infosys share price</keyword> surged over 4% in early trade, after the company’s Q2 show and revised FY23 guidance.</li><li><keyword id="6354512" type="General" weightage="100" keywordseo="infosys" source="Orion">Infosys</keyword> also announced ₹9,300 crore worth share buyback programme, offering a 30% premium over October 13’s closing price.</li><li>Infy’s commentary has also resulted in brokerages increasing the stock’s target price with an upside of up to 33%.</li></ul>IT major Infosys’ shares surged by over 4% in early trade today after the company<a href="https://www.businessinsider.in/business/corporates/news/infosys-reports-4-revenue-growth-in-constant-currency-announces-9300-crore-worth-buyback-of-shares/articleshow/94838572.cms"> reported better-than-expected earnings in Q2</a> and announced a share buyback programme worth ₹9,300 crore. The sharp surge in Infosys shares comes a day after the IT major reported revenue growth on the back of $2.7 billion worth large deal wins. The company also raised revenue growth guidance for FY23 to 15-16%, from the 13-15% that it had announced at the end of FY22. “Infosys' Q2 results were above estimates driven by margin expansion. Deal wins at a seven-quarter high and healthy hiring trends offer comfort on growth,” said a report by Jefferies, maintaining its ‘buy’ rating on the stock, adding that even though its current valuation is at a premium to its 10-year average, the company’s growth outlook justifies it. Infosys’ revenue growth in constant currency terms came in at 4% sequentially, and 18.8% on a year-on-year basis, in line with analyst expectations. Digital revenues, which account for 61.8% of its total revenues, grew 31.2% year-on-year in constant currency. Global brokerage Credit Suisse said in a note that the large share of digital services in Infosys’ revenue mix could reduce the impact of the slowdown in IT services growth in FY24 when compared to its peers. Overall, Infosys’ revenue grew 6% sequentially to ₹36,358 crore, while net profit surged 12.3% to ₹6,021 crore. Infosys also announced ₹9,300 crore worth share buyback programme at ₹1,850 per share – this was at a premium of 30% over yesterday’s closing price. <div type="image" title="Infosys 01_01_22 to 14_10_22." msid="94851143" hostid="261" caption="&amp;lt;p&amp;gt;Infosys share price in 2022 so far&amp;lt;/p&amp;gt;"></div> Here’s what brokerages recommend: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rating </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Upside </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss Research </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,891 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">33% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CLSA </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,800 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jefferies </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,700 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Credit Suisse </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Outperform </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,710 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Citi </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,685 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nomura </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,640 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JP Morgan </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,600 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BofA Securities </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,535 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UBS </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,490 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Note: Upside compared to the closing price of ₹1,419.90 on October 13, 2022 SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/infosys-reports-4-revenue-growth-in-constant-currency-announces-9300-crore-worth-buyback-of-shares/articleshow/94838572.cms">Infosys reports 4% revenue growth in constant currency, announces ₹9,300 crore worth buyback of shares</a> <a href="https://www.businessinsider.in/business/corporates/news/it-cos-go-slow-on-hiring-despite-high-attrition-rates-hiring-down-57-in-q2/articleshow/94832706.cms">IT cos go slow on hiring despite high attrition rates, hiring down 57% in Q2</a> <a href="https://www.businessinsider.in/stock-market/news/wipro-is-the-top-loser-on-the-exchanges-while-hcl-tech-is-the-top-gainer/articleshow/94827205.cms">HCL Tech surges on better than expected earnings, Wipro hits 52-week low on disappointing Q3 guidance</a>

Infosys shares surge after Q2 results, ₹9,300 crore buyback announcement

<ul><li>Market expects Infosys to exit FY24 with revenue growth of 3%, which is the upper end of its guidance. </li><li>The sudden and significant reduction in revenue growth guidance during the first quarter of FY24 is unexpected for a company that has been leading the sector in terms of growth. </li><li>After Friday’s fall, stock was trading in line with its 10 year average but below its 5 year average. </li></ul>Shares of Infosys fell by more than 8% on Friday in line with the 9% fall in ADRs on Thursday, after the company sharply cut its revenue guidance for the ongoing fiscal year. Given that the company has reset growth expectations for the rest of the fiscal year, there is little downside left for the stock. The market is of the view that revenues will continue to remain under pressure for the remaining three quarters as well. Two of its key business verticals – financial services and retail – have underperformed during the quarter, even though the headline figures were largely in line with the market’s expectations. Given that discretionary spends across mortgage, investment banking, asset management and payments are weak, conversion of deals into revenues will continue to be a challenge for the company. The cut in its guidance implies a 0.2-1.8% CQGR (compounded quarterly growth rate) for the remaining three quarters. Jefferies expects the company to grow its constant currency revenues by 3% year-on-year in FY24. Interestingly, after the stock fell in morning trade by over 8%, analysts believe that the stock may continue to be a buy. American Depository Receipts of Infosys fell by 9% after the company announced its Q1 results. <keyword id="139416" type="General" weightage="20" keywordseo="infosys-stock" source="Orion">Infosys stock</keyword> after the fall would be trading at 19x FY25 EPS, which is in line with its 10 year average and 13% below its five year average, says Jefferies. Kotak too has retained a ‘Buy’ rating on the stock despite the disappointment from the material guidance cut. According to Kotak Institutional Equities, “A sudden sharp cut in revenue growth guidance in 1QFY24 is surprising for a company at the top of the game and leading growth charts. This does warrant a closer scrutiny although there is nothing in metrics that suggests loss of competitiveness or wallet share.” The brokerage firm has cut FY2024-26 revenue forecast by 2-3% and FY2024E c/c revenue growth forecast to 3.3% from 4.9% earlier. It has also cut EPS estimates by 2-3% baking in lower growth and marginal cut in margins, offset by change in INR/USD assumption. Like other leading broking firms, it has also maintained a “Buy” rating, valuing the company at an unchanged multiple of 20 times June 2025 EPS. The fair value of Infosys shares remained unchanged at ₹1,470. A cut in the <a href="https://www.businessinsider.in/business/corporates/news/infosys-slashes-fy24-growth-guidance-as-clients-defer-decisions-and-start-dates/articleshow/101988348.cms">revenue growth guidance</a> by IT bellwether Infosys was a key disappointment that led to Dalal Street tumbling in <a href="https://www.businessinsider.in/stock-market/markets/news/infosys-falls-nearly-8-as-nifty-sensex-tumble-in-friday-trade/articleshow/102003264.cms">early morning trade</a>. The company said on Thursday that it expects to grow its revenues between 1%-3.5% in FY24 against 4-7%. Given that the quarterly numbers do not bear any red flag, Infosys may be playing it safe by cutting its revenue guidance going by the environment in its key markets. The company has been in the habit of underpromising at the start of the year only to beat its own guidance later. However, for the last two quarters the market has been taken by surprise. <cmsannotation type="cmsannotation" annotationid="Nomura: Stock downgraded from neutral to reduce" comment="subhead" text="Nomura: Stock downgraded from neutral to reduce">Nomura: Stock downgraded from neutral to reduce</cmsannotation> In the light of the revised FY24-25 revenue estimates, the earnings for that period are anticipated to decrease by approximately 3-4%, resulting in lower earnings per share (EPS) estimates, which are now 5-6% lower, according to Nomura’s Global Market research. Due to these adjustments, the stock has been downgraded from ‘neutral’ to ‘reduce’. The revised target price for the stock is set at ₹1,210 (previously ₹1,260) at an unchanged 18 times the forecasted FY25 EPS. This multiple is lower than the five-year average of approximately 20 times. The current trading value of the stock stands at approximately 21.7 times the forecasted FY2025 EPS. <cmsannotation type="cmsannotation" annotationid="Kotak Institutional Equities: Buy rating maintained" text="Kotak Institutional Equities: Buy rating maintained">Kotak Institutional Equities: Buy rating maintained</cmsannotation> The sudden and significant reduction in revenue growth guidance during the first quarter of FY24 is unexpected for a company that has been leading in terms of growth, as per analysts at Kotak Institutional Equities. While there are no apparent signs of lost competitiveness or market share, a closer examination is warranted. As a result, the forecasted revenue for FY2024-26 has been revised downward by 2-3%, with estimated FY2024 constant currency revenue growth forecast reduced to 3.3% from the previous 4.9%. The EPS estimates have also been lowered by 2-3% to account for the reduced growth and a slight decline in margins. However, these adjustments are offset by a change in the INR/USD assumption. Despite the revisions, the report maintains a BUY rating for the company and values it at an unchanged multiple of 20 times the estimated June 2025 EPS, resulting in an unchanged fair value of ₹1,470. <cmsannotation type="cmsannotation" annotationid="Jefferies Equity Research: Recommendation remains a BUY" comment="subhead" text="Jefferies Equity Research: Recommendation remains a BUY">Jefferies Equity Research: Recommendation remains a BUY</cmsannotation> Jefferies has reduced its EPS estimates for FY 20244-2026 by up to 2%, while still expecting Infosys to achieve an EPS CAGR (Compound Annual Growth Rate) of 10% over FY 2023-2026. They believe that the company's new guidance poses limited earnings risks. Despite a 9% decline in Infosys' American Depository Receipts (ADRs) at the time of writing, if the stock experiences a similar fall tomorrow, it will be trading at 19 times the FY2025 EPS, aligning with its ten-year average and 13% below its five-year average, both of which are considered reasonable valuations. With the stock priced below the average price-to-earnings ratio based on realistic earnings, the recommendation remains a BUY, with an unchanged price target of ₹1,550, based on 22 times the forward EPS for the next 12 months. <cmsannotation type="cmsannotation" annotationid="Recommendation remains a BUY: Motilal Oswal Financial Services" comment="subhead" text="Recommendation remains a BUY: Motilal Oswal Financial Services">Recommendation remains a BUY: Motilal Oswal Financial Services</cmsannotation> Meanwhile, analysts at Motilal Oswal Financial Services have revised their guidance FY2024 estimates, which were initially at 3.8% YoY CC (year-on-year constant currency), by 120 basis points (bps) due to weaker demand commentary and project delays, despite the 325 bps cut in guidance at the midpoint. Based on their assessment, they value the stock at ₹1,600 at 22.5 times estimated FY25 EPS. The recommendation for the stock remains a BUY, with a reiteration of their positive rating.

Infosys stock tumbles but analysts maintain ‘Buy’ rating on Infosys despite sharp cut in revenue guidance

<ul><li>Shares of <keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion">Infosys</keyword> plunged as much as 9% today on lower than expected March quarter earnings.</li><li>Analysts have cut down company estimates as the profit margin of the company remains under pressure due to cost pressures led by higher employee costs and a rise in travel costs.</li><li>As a result, shares of other information technology firms also fell today in an already weak market.</li></ul>IT giant Infosys disappointed investors as the stock of the company plunged nearly 9% on poor Jan-Mar quarter earnings. Stable deal wins and lower than the expected profit margin of the company due to cost pressures led by higher employee costs and rise in travel costs among concerns that impacted Infosys stock. Infosys ADR stock, which trades on the US stock market, slipped 14% in previous 5 sessions because of weak earnings at a time when Indian markets were closed due to holidays. “Infosys' 4Q (March quarter) results missed estimates mainly due to muted growth of 1.2% on quarter constant currency. However, its 13-15% revenue growth guidance for FY23 and all-time high net additions reflect a strong demand outlook,” said analysts at Jefferies. After considering the seasonal weakness in the Jan-Mar quarter, Infosys result was still disappointing. “Infosys' growth in 4Q disappointed even considering the seasonal weakness. Muted growth in its top-2 verticals (BFSI and Retail) and top markets (North America and Europe) and a sharp decline in Life Sciences vertical possibly due to one-off contractual issues resulted in the subdued growth performance,” said a report by Jefferies. <div type="image" title="infosys 2" height="900" width="1200" msid="90906620" hostid="261"></div> Besides, Infosys’ attrition worsened more in the March quarter reaching at 27.7% from 25.5% in the previous quarter. The IT major’s attrition rate is worse in the industry compared to other Indian peers, even more than <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword>’ attrition rate of 17.4% in the same quarter. Moreover, it expects the attrition rate to decline gradually as it also kicks off hikes from April 1. The market capitalisation of the top company fell to ₹6.8 lakh crore from ₹7 lakh crore last week. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> Moreover, analysts expect the share price of the company to rise more as the demand outlook for the future remains strong. As of 11:27 p.m. shares of the company stand at ₹1,621 per share, down by 7.29%. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage house </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JM Financial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,970 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CLSA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,040 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jefferies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,135 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Credit Suisse </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,050 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/extreme-poverty-in-india-declined-12-in-the-last-decade-says-world-bank/articleshow/90905593.cms">Extreme Poverty in India declined 12% in the last decade, says World Bank</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/exim-bank-recruitment-2022-checkout-vacancies-eligibility-criteria-and-other-details/articleshow/90904895.cms">Exim Bank recruitment 2022: Checkout vacancies, eligibility criteria and other details</a>

Infosys slides 9% on poor March quarter earnings, other IT stocks follow suit

In <keyword id="6369763" type="PERSON" weightage="100" keywordseo="Vishal-Sikka">Vishal Sikka</keyword>’s leadership, <a href="http://www.businessinsider.in/articleshow/52202635.cms">Infosys</a> is doing one wonder after another. After it snatched away the bellwether tag from <a href="http://www.businessinsider.in/Indian-IT-firms-huge-bids/articleshow/51995134.cms">TCS</a> after a gap of four years, it is now going to do what nobody in the IT industry would have thought: replacing Cognizant to become number one. 
 
The 35-year old IT giant came to the number one position in the IT space within just 21 months of <a href="http://www.businessinsider.in/Here-is-how-Vishal-Sikka-has-become-the-man-Infosys-always-wanted/articleshow/51454896.cms">Sikka taking the charge</a>, but looks like the man is on some mission. 
Also read: <a href="http://www.businessinsider.in/Infosys-growth-story-is-unstoppable-and-it-may-become-a-20-billion-company-by-2020/articleshow/51252593.cms">Infosys’ growth story is unstoppable and it may become a $20 billion company by 2020</a> 
 
In addition to his achievements, one might also see that Cognizant's first quarter results were <a href="http://www.businessinsider.in/First-time-in-14-yrs-Cognizant-posts-slowest-quarter-due-to-volatile-markets-slow-spending/articleshow/52154916.cms">not that great</a>, with the company reporting its slowest quarterly revenue growth in 14 years at 10%. 
 This was the right strike time for <keyword id="6354512" type="CITY" weightage="100" keywordseo="Infosys">Infosys</keyword>, which has pinned a revenue growth of 11.8-13.8% in constant currency terms for FY 2016-17. This way, it aims to beat Cognizant in revenue growth for the first time in 13 years and only the fifth time since 1996. 
 
If that happens, Infosys will become the fastest growing IT services company in the world, ahead of its bigger rivals like TCS and Cognizant. 
 
When talking of stock performance, Infosys has left Cognizant far behind, with its American depository receipt (ADR) growing 18% in the past 12 months on the NYSE. On the other hand, Cognizant has seen a mere 2.4% rise on the NASDAQ. 
 
"Over the years what has happened is that Cognizant growth rate is coming down from what it used to be a couple of years back. Earlier it used to be a good leading indicator. But as we have seen, the industry growth rate has been coming off over the years and the growth differential between Cognizant and performing leading Indian IT companies has reduced," Systematix VP Rahul Jain told ET. 
 
"To take a clear view of how the growth looks up for other Indian vendors compared with Cognizant, that comparison is becoming less and less relevant," he added. 
 
<a href="https://qzprod.files.wordpress.com/2015/07/rtr4kqhe.jpg?quality=80&amp;strip=all&amp;w=1600">Image source</a>

Infosys might soon replace Cognizant to become the industry leader

New Delhi, Feb 27 () IT services major Infosys on Thursday said it has allotted 2.23 lakh equity shares under its 2015 Stock Incentive Compensation Plan to the CEO, COO and other eligible employees. It further said the issued and subscribed share capital of the company has consequently "increased to Rs 21,29,44,27,185, divided into 4,25,88,85,437 equity shares of Rs 5 each". In a regulatory filing, Infosys said it "has allotted 2,23,297 equity shares under the 2015 Stock Incentive Compensation Plan to the eligible employees of the company on February 26, 2020, pursuant to the exercise of Restricted Stock Units under ADR Issue." Infosys, on Wednesday, had informed the stock exchanges that it has granted stock incentives worth Rs 3.25 crore to CEO Salil Parekh under the 2015 Incentive Compensation Plan. The incentive had been offered in the form of Restricted Stock Units (RSUs) and they have a three-year equal vesting schedule, it had said. "The date of grant for these stock incentive units is February 27, and the exercise price will be the par value of shares," it had said. Also, COO UB Pravin Rao received 58,650 RSUs and five key managerial personnel (KMPs) will receive stock incentives of 3,53,270. Another 371 eligible employees were granted 14,87,150 RSUs under the same scheme. These shares will have four-year equal vesting period. SR ABM

Infosys allots 2.23 lakh equity shares under 2015 Stock Incentive Compensation Plan

<ul><li>Wipro announced seven major deal wins in the past 12 months in the more than $100 million category.</li><li>The IT services major also suggested that it is steady on the path of $10 billion annual revenue run rate.</li><li>Wipro also revealed that it now has the highest number of large clients yet.</li></ul>Wipro’s management guidance for the March quarter is that the revenue from its IT services business to grow 2-4%. That’s better than the 1.9% growth clocked in the December quarter. Since companies like Wipro, TCS, and Infosys export software, and earn in dollars, pounds or euros, they report growth in constant currency terms, which is adjusted for foreign exchange fluctuations. Wipro ADRs (American Depository Receipts) were down by 1.5% as of 5:30 p.m., today (January 12). In its exchange filing, <keyword id="597306" type="General" weightage="20" keywordseo="wipro-ceo" source="Orion">Wipro CEO</keyword> and Managing Director Thierry Delaporte said that the company added seven new customers, each bringing in revenues of over $100 million, in the past 12 months, the highest yet. “We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly,” Delaporte added. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dec-21 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sept-21 </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Performance </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT services revenue </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.66 billion </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2.61 billion </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3% </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,972 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,997 crore </td><td style="border-left:solid #000000 0.6260872500000001pt;border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: Company reports, $ in constant currency terms The Bengaluru-based IT company reported a 29.6% growth in its revenue, year-on-year, while IT services margin remained strong at 17.6%. <div type="image" title="Wipro IT services revenue $ CC - Q3 FY22." msid="88856195" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s IT services revenue over the past eight quarters&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="New large deals in the quarter – from healthcare to waste management and more" comment="subhead" text="New large deals in the quarter – from healthcare to waste management and more">New large deals in the quarter – from healthcare to waste management and more</cmsannotation> Wipro stated that it has signed new deals across various industries, including healthcare, waste management, manufacturing and more. In its IT services segment, Wipro signed up clients across healthcare, manufacturing, retail brokerage, and hospitality sectors, all of which are US-based. In its Digital services segment, the company signed up a Brazilian water and waste management company, apart from three other US-based clients to enhance their cloud security and digitisation programs. The company’s board has also declared an interim dividend of ₹1 per share. <cmsannotation type="cmsannotation" annotationid="Omicron forces Wipro to close its offices globally for the next four weeks" comment="subhead" text="Omicron forces Wipro to close its offices globally for the next four weeks">Omicron forces Wipro to close its offices globally for the next four weeks</cmsannotation> The relentless surge of the Omicron variant of Covid-19 has forced Wipro to close its offices globally for the next four weeks. The company CEO Delaporte stated that the return to offices would be re-calibrated based on the evolving situation of the pandemic. SEE ALSO: <a href="https://www.businessinsider.in/careers/news/wipro-plans-to-hire-30000-freshers-in-2023-as-attrition-rate-increases-to-22/articleshow/88855676.cms">Wipro increases hiring plan to 30,000 as attrition hits a new high</a> <a href="https://www.businessinsider.in/tech/enterprise/news/infosys-saw-its-revenue-grow-by-7-in-q3-fy22/articleshow/88855661.cms">Infosys raises full year guidance after the best quarter in at least eight</a>

Wipro CEO says dollar revenue will grow 2-4% in the next three months

Largest private sector lender <keyword id="6357149" type="COMPANY" weightage="20" keywordseo="hdfc-bank">HDFC Bank</keyword> on Monday denied the allegations of misleading claims levelled by a US-based law firm to seek damages in a class action suit. The bank vowed to defend itself "vigorously" in the lawsuit and added that the response to the lawsuit will be ready by early next year. <keyword id="9273308" type="UNKNOWN" weightage="20" keywordseo="Rosen-Legal">Rosen Legal</keyword> last week filed the class action suit seeking damages for the losses incurred by investors because of alleged "materially false and misleading" representations by HDFC Bank. It had specifically named the bank's chief executive and managing director of over 25 years, <keyword id="6406769" type="ORGANIZATION" weightage="20" keywordseo="aditya-puri">Aditya Puri</keyword>, his designated successor <keyword id="6836606" type="UNKNOWN" weightage="20" keywordseo="sashidhar-jagdishan">Sashidhar Jagdishan</keyword> and company secretary <keyword id="434855" type="COMPANY" weightage="20" keywordseo="Santosh-Haldankar">Santosh Haldankar</keyword> as defendants. The bank said the lawsuit has been filed against three of its employees by a "single small security holder who seeks to represent a class" of its security holders, and is based on allegations, that the security holder claims, caused a temporary decline in the Bank's ADR (American Depository Receipt) stock price in July. "The Bank denies the allegations and intends to defend itself vigorously in the lawsuit," it said in an exchange filing. The complaint did not mention the exact quantum of the damages sought though it maintained that may be thousands of investors would have suffered. As per the suit, bank officials "engaged in a plan, scheme, conspiracy and course of conduct, pursuant to which they knowingly or recklessly engaged in acts, transactions, practices and courses of business which operated as a fraud and deceit", resulting in the losses to investors. The allegations pertain to the vehicle finance vertical, where the Bank has later acknowledged to have found some improprieties which resulted in some executives being acted against. The bank had inadequate disclosure controls and procedures and internal control over financial reporting, maintained improper lending practices in the vehicle financing making the operations unsustainable and all this was likely to have a materially negative impact on its financial condition and reputation, it alleged. "The Bank's public statements were materially false and misleading at all relevant times," the suit claims, adding the defendants "knew that the adverse facts" had not been disclosed and were being "concealed from the public". The period during which the losses are alleged to have happened to the investors is between July 31, 2019 and July 10, 2020 which is referred to as the "class period". Initially, the bank had termed the move to file the suit as "frivolous" and asserted that it has been transparent in all its disclosures. According to reports, the bank used to bundle vehicle tracking devices along with auto loans sold by it, resulting in an additional cost to the borrower, and also concerns over privacy. There was speculation over the circumstances under which its head of the unit left the office, but the bank later clarified that it was a scheduled retirement. HDFC Bank shares closed 0.82 per cent down at Rs 1,048.70 apiece on the BSE, as against 2.09 per cent correction on benchmark index Sensex. SEE ALSO: <a href="https://www.businessinsider.in/defense/news/latest-updates-on-india-china-border-issue/articleshow/78162853.cms">Indian Army may call on the double hump camel to help patrol the India-China border</a> <a href="https://www.businessinsider.in/stock-market/markets/news/indian-tech-companies-hcl-tech-wipro-infosys-tcs-share-price-are-green-today/articleshow/78228700.cms">It’s not just the DWS deal, Morgan Stanley's outlook has painted HCL Tech green⁠ — along with TCS, Infosys and Wipro</a> <a href="https://www.businessinsider.in/tech/news/top-ten-phishing-examples-and-tricks-used-by-companies-to-test-their-employees-cybersecurity-smarts/slidelist/78228072.cms">Top ten phishing tricks that companies are using to test their employees’ cybersecurity smarts</a>

You Searched For "Infosys ADR" and got 7 results

Infosys shares surge after Q2 results, ₹9,300 crore buyback announcement

Rounak Jain

Infosys stock tumbles but analysts maintain ‘Buy’ rating on Infosys despite sharp cut in revenue guidance

BI India Bureau

Infosys slides 9% on poor March quarter earnings, other IT stocks follow suit

Bhakti Makwana

Infosys might soon replace Cognizant to become the industry leader

BI India Bureau

Infosys allots 2.23 lakh equity shares under 2015 Stock Incentive Compensation Plan

PTI

Wipro CEO says dollar revenue will grow 2-4% in the next three months

Rounak Jain

HDFC Bank denies charges by US law firm, called them 'misleading'

PTI

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