Infosys is mobilized for the 8th consecutive day and reaches a record level; up 13% in one month
Infosys shares rose 1% to a record Rs 1,484.10 on BSE in intraday trading on Wednesday in an otherwise subdued market. The stock of the major in information technology (IT) has exceeded its previous high of Rs 1,480 touched on April 12, 2021.
Infosys traded higher for eight consecutive days. At 1:25 p.m., the stock was up 0.45% to Rs 1,479.45, against a 0.41% drop in the S&P BSE Sensex.
Infosys on Monday, June 14, 2021, informed the exchanges that the meeting of the board of directors of the company is scheduled for July 14, 2021, among others, to review and approve the audited consolidated financial results of the company for the quarter. ending June 30, 2021 (T1FY22).
In the past week, the stock has gained 5%, while in one month it is up 13%, compared to a rise of 1% and 8%, respectively, in the benchmark.
Prabhudas Lilladher analysts said they were impressed with P&P’s strong revenue growth (products and platforms) of 23% year-on-year for fiscal year 2020-21 (FY21), led by a takeover at McCamish, EdgeVerve and Stater (represent 91% of P&P revenues). In addition, R&D spending at Rs 950 crore (0.9% of sales) remained stable.
The company’s FCF / PAT ratio hits record high (115%), driven by 36% year-on-year decline in investments, 30% year-on-year CFO growth and 45% year-on-year growth annual FCFE. We maintain that Infosys will be at the forefront of digital transformation, and that its targeted execution is also clearly visible in transaction dynamics, revenue acceleration and margin resilience, ”analysts said during analysis of the FY21 annual report.
ICICI Direct has a buy rating on Infosys with a target price of Rs 1,650 per share, as analysts at the brokerage firm expect IT spending to improve through migration to the cloud, to increasing business spending on customer and employee experience (P&L driven investment), and supporting technologies like AI, IOT, data analytics.
“An improved demand environment, traction in large contracts, increased outsourcing in the US and Europe, supplier consolidation opportunities, captive exclusions and take-out deals are expected to generate revenue at long term. In addition, good digital revenue traction, higher revenue growth than Tata Consultancy Services (TCS) over the past 12 months, and narrowing of the margin gap with TCS are other key positives. This, coupled with a healthy cash conversion, a solid capital allocation policy and an accretive EPS buyback, encourages us to be positive on the stock, ”the brokerage firm said in its results update. of T4FY21.