An ET Now poll had projected the net profit to be around Rs 6,550 crore while the revenue figure was pegged at Rs 38,850 crore.
The results were announced after market hours on Thursday. Indian equity markets were closed for trading on Friday on account of Ambedkar Jayanti.
This is what top brokerages recommend on Infosys following Q4 numbers:
Jefferies: Buy | Target: Rs 1,570 | Upside: 13%
Despite calling Infosys’ January-March 2023 quarter results “shocking”, Jefferies maintained a ‘Buy’ on the second-largest IT services company for a price target of Rs 1,570. The brokerage said that FY24 guidance suggests a weak demand outlook and therefore cut its FY24-25 estimates by 3-6%. It said that it sees potential stock fall on weak Q4 results as an attractive buying opportunity.
Key risks include weaker revenue growth, lower margin, unfavourable currency and corporate action, the brokerage said.
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Nomura: Neutral | Target: Rs 1,290 | Upside: 28%
Brokerage firm Nomura has downgraded Infosys to ‘Neutral’ with a price target of Rs 1,290. It said that guidance and deal wins indicate a weak outlook for the company. Nomura has cut FY24-25 EPS by 8-9% and reduced the valuation to 18X from 21X earlier. It further said that the growth differential with Tata Consultancy Services is set to narrow.
HDFC Securities: Add (from Buy) | Target: Rs 1,470 | Upside: 6%
HDFC Securities cut its estimates by 4-5% and downgraded Infosys to ‘Add’ from an earlier ‘Buy’ stance. It has revised the target price to Rs 1,470 (from Rs 1,830) which is based on 21X December-24E (25X earlier). This is at a 20% discount to TCS’ valuations based on a relative growth discount, the brokerage said.
Recent senior-level exits and the possibility of continued stress from large accounts are risks to growth, it added.
Kotak Institutional Securities: Buy | Target: Rs 1,470 | Upside: 6%
Kotak Institutional Equities cuts its revenue growth and margin estimates, leading to a 6-7% cut to FY2024-25E EPS. Though it maintained a ‘Buy’ with a FV of Rs 1,470 (Rs 1,700 earlier), valuing the company at 20X FY2025E EPS. “We expect muted 1QFY24 with growth recovery in 2HFY24, led by large/mega deal revenue,” the brokerage said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)