Brokerage firm Centrum Broking is positive on Infosys and it recommended investors 'add' the Infomation Technology services firm's shares to their investment portfolio.
The brokerage sees the potential of about 10 per cent returns on investment. It pegged the share target price at Rs 1,633.
At the time of writing this report, the shares of Infosys were trading at Rs 1,510. Over the past one year, the shares declined over 20 per cent on a cumulative basis.
"Infosys raised revenue guidance to 16-16.5 per cent constant currency revenues for FY23, while retaining operating margin guidance at 21-22 per cent. Large deal Total Contract Value (TCV) at USD 3.3 bn was the highest in eight quarters, which management attributed to higher cost optimisation projects and growing vendor consolidation," said the brokerage in its technical report.
Meanwhile, Infosys on Thursday reported a strong October-December 2022 performance with year-on-year net profit growth of over 13 per cent. The net profit during the quarter was Rs 6,586 crore, the company said in its earnings report.
The firm's year-on-year growth was in double digits for most business segments and geographical regions.
The IT services firm's revenue during the December quarter was at Rs 38,318 crore, against Rs 31,867 crore in the same quarter of 2021. It is 20 per cent higher year-on-year.
"Our revenue growth was strong in the quarter, with both digital business and core services growing. This is a clear reflection of our deep client relevance, industry-leading digital, cloud, and automation capabilities, and the unrelenting dedication of our employees", said Salil Parekh, CEO and MD, on the earnings.
"As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors," Parekh added.
According to Infosys' Chief Financial Officer Nilanjan Roy, the attrition rate (among the human resources) reduced "meaningfully" during the quarter and is expected to decline further in the near term.
Infosys is a global leader in digital services and consulting and it enables clients in 46 countries to navigate their digital transformation. It has about four decades of experience.
( With inputs from ANI )
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