Infosys - Key beneficiary of increased IT spending - Angel Broking
Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd"Infosys is likely to be one of the biggest beneficiaries on account of increased spending on IT due to accelerated adoption of digital technologies post the covid-19 outbreak. The company had posted a better than expected set of numbers for Q1FY21 across all parameters while new deal wins remained strong at USD 1.74bn for the quarter. Infosys derived 44.5% of its revenue from digital services in Q1FY2021 which is amongst the highest for large cap IT companies. Going forward we expect growth to be driven by digital which we expect to increase to over 50% of revenues by FY2022 and more than offset any decline in legacy business for the company. Recent developments like the mid quarter guidance upgrade by HCL Tech and strong performance by Accenture's outsourcing division in Q4FY2020 point to a strong demand outlook for the sector. We expect Infosys to post a 5.3%/16.7% revenue and PAT CAGR between FY2020-22 and maintain our positive outlook on the company."
Shares of INFOSYS LTD. was last trading in BSE at Rs.1009.5 as compared to the previous close of Rs. 1011.05. The total number of shares traded during the day was 207259 in over 6645 trades.
The stock hit an intraday high of Rs. 1016.3 and intraday low of 998.5. The net turnover during the day was Rs. 208248971.
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