Topic Interaction - Should You Buy Infosys?

IT giant Infosys Ltd (NS:INFY) reported its numbers for Q1 FY22 on Wednesday. Revenue came in at Rs 27,896 crore, up from Rs 26,311 crore in Q4 FY21. Net profit came in at Rs 5,195 crore, up 2.34% from Rs 5,076 crore in Q4 FY21.

Revenue beat analysts estimates while net profit came in a little short. The company revised its guidance for FY22 to 14-16% from an earlier 12-14%.

Is the stock a good buy？ Infosys is currently trading at Rs 1,584 as of this report. Yes, say brokerages. Credit Suisse (SIX:CSGN) has upgraded the target price to Rs 1,890. It said while profits were a little short, the upwards revenue guidance is positive.

CLSA has a target of Rs 1,900 on Infosys. It said, “Expected upgrade in FY22 revenue growth guidance indicates strength of demand drivers. While we cut FY22 EPS by 2 percent, FY23/24 EPS estimates remain broadly unchanged. The company remains preferred play on growing digital spending and market share gains. It is also part of our Indias focus buy list.”

Goldman Sachs (NYSE:GS) said, “We believe the company's strategy to capture demand at the cost of margin is an apt one. Post Q1, we increase our revenue growth forecasts but cut down margin forecast and cut EPS estimates by 2-3%. Reiterate buy given best-in-class digital capability and seamless management execution.” It has a target of Rs 1,781 on Infosys stock.

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