Infosys Share Price: The country’s second-largest IT company Infosys shares are witnessing a huge decline today. Today, the stock of Infosys weakened by 9 percent to Rs 1592 on the BSE intraday. Whereas on Wednesday last week, it closed at Rs 1749. The company’s fourth-quarter results have been slightly weaker than expected, which has spoiled investor sentiment today. However, brokerage houses are positive about the stock and expect a better upside going forward. The market cap of the company has come down to below 6.80 lakh crore today.
Infosys Share Price: Results weak, but guidance strong
The company’s conso net profit stood at Rs 5686 crore. It has decreased on a quarterly basis. At the same time, the company has a growth of 1.2% QoQ CC in 4QFY22, which is weaker than the estimate of 2.8 percent. The company’s EBIT margin declined by 190bp QoQ to 21.6 percent, which is weaker than the 23 percent estimate.
In the fourth quarter, the company received large orders worth $ 2.3 billion. Management has kept margin guidance at 21-23 percent for FY23, which is 100bps lower than the earlier guidance. On the other hand, the guidance for revenue growth has been given at 13-15 percent. It is expected that it will increase in the next quarters.
The company’s constant currency revenue growth has been 19.7 percent for the full financial year 2022, while the company has projected it to be 19.5-20 percent in its guidance. The company’s margin has been 23 percent in FY 2022, while the company had projected it to be 22-24 percent in its guidance.
Infosys Share Price: Share brokerage opinion
Brokerage house Emkay Global has given a target of Rs 1970 while recommending investment in the stock. Whereas Motilal Oswal has given a target of Rs 2000 while advising to buy in the stock. Brokerage house CLSA has also advised investing in the stock and has given a target of Rs 2040. Whereas Goldman Sachs has given investment advice with a target of Rs 2060. Brokerage house Nomura has given buying advice-giving a target of 2050. Morgan Stanley has also given a target of Rs 2050 while giving a buying opinion.
The brokerage says that although INFOSYS’s earnings in 4QFY22 have been weak, but the confidence has increased due to strong revenue growth guidance. The order book of the company is also strong. The demand environment remains favorable and the company will also get the benefit of increasing IT spending.
