In Q4, Infosys fails to impress: Brokers have this to say:
Revenue increased 16% to Rs 37,441 crore, and the company's net profit increased 7.8% to Rs 6,128 crore. What brokerages said about Infosys' performance in the fourth quarter:
Ankush Pandey
Infosys, India's second-largest IT services provider, reported lower-than-anticipated topline and bottom line growth in the final quarter of FY23.
Revenue increased 16% to Rs 37,441 crore, and the company's net profit increased 7.8% to Rs 6,128 crore. The growth was lower than what analysts expected, and it even showed a sequential decline.
In addition, the management of the business anticipates slower revenue growth for the upcoming fiscal year than analysts had anticipated. Infosys expects income development of 4-7 percent for the monetary year finishing Walk 2024, while it sees FY24 working edges in the scope of 20-22 percent.
Following the outcomes, a greater part of businesses have turned careful about the stock's exhibition later on, with some in any event, reducing their objective costs and profit per share gauges.
The stock was given a "buy" rating by domestic brokerage ICICI Securities, but the target price was lowered to Rs 1,641. The financier predicts 6.4 percent income development in steady money (CC) terms in FY24, and for FY25 and FY26, it kept a twofold digit income development figure of 13% and 12.4 percent, separately, in CC terms.
Motilal Oswal, a brokerage, also upgraded the stock to a "buy" rating and lowered the target price to Rs 1,520. It lowered its estimates for the stock's earnings per share for FY24 and FY25 by 4-5 percent. The brokerage anticipates a 9.3% year-over-year increase in Infosys' FY24 profit growth.
Another brokerage, Emkay Global, maintained a "buy" rating on Infosys but lowered its target price to Rs 1,620. The brokerage believes that Infosys is well-suited to seize digital transformation growth opportunities.
Business firm Nomura minimized the stock to 'unbiased' from negative and slice its objective cost to Rs 1,290 from Rs 1,660. Earnings per share estimates for FY24 and FY25 were lowered by 8 to 9%, according to Nomura, in light of the bleak outlook and guidance.
In contrast, Ambit Capital downgraded Infosys to a "sell" rating and lowered its target price to Rs 1,340. The brokerage stated that growth, margin, and guidance were significantly below its expectations, and that all US verticals were experiencing a general decline.
