INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Infosys paced up well on Monday, climbing 3 per cent, in the wake of the IT biggie's June quarter earnings.
The second-largest
software major reported a 3.7 per cent growth in consolidated net profit at Rs 3,612 crore for April-June, compared with Rs 3,483 crore in
the year-ago period.
Revenues rose 12 per cent to Rs 19,128 crore against Rs 17,078 crore in the previous fiscal.
The stock rose 2.74 per
cent to hit a high of Rs 1,345 on BSE
Analysts are mixed on the stock.
Brokerage Nomura India noted that the results were a tad lower than consensus on the growth and margin
front.
The Bengaluru-based firm maintained its FY19 revenue growth guidance of 6-8 per cent in constant currency terms and that of EBIT
margin at 22-24 per cent.
"The results do not suggest that the BFSI rebound indicated by TCS is an industry phenomenon as Infosys' declined
In addition, slowing of revenue growth in communications vertical was a negative
However, the retail segment growth uptick was a positive and mirrored similar trends seen at TCS
The sustainability of this trend is key to watch, given structural challenges in this segment
We maintain our Reduce rating," the brokerage said
The brokerage house has a target of Rs 1,130 on the stock.
CLSA has maintained buy on the stock with a target of Rs 1,560
It said Q1 was a soft quarter for Infosys with firm outlook
HSBC has maintained buy rating on the stock with a target of Rs 1,430 as the numbers were in line with the brokerage's expectations with
Jefferies believes the Q1 numbers were a mixed bag
The brokerage though has maintained an overweight on the stock with a target of Rs 1,450.
HDFC Securities sees recovery ahead for the IT
It expects rapid acceleration in digital segment driven by cloud transformation, IoT, cybersecurity and UI-UX projects
Improving large deal trajectory and strong large account metrics, a recovery in the BFSI space, and strong outlook for the North American
geography across retail and BFSI verticals have led the brokerage to maintain buy on the stock
Reliance Securities has maintained a positive view on the scrip.
