Aditi Patil - Research Associate at Prabhudas Lilladher Pvt. Ltd.
- Near term demand outlook remains strong amidst weak global macro trends.
- Sharpening focus in Europe as incremental tech spends in Europe expected to be at par as that in US over next 5 years.
Infy's management outlined their strategy to continue to grow ahead of industry by strengthening focus on 1) large deals, 2) cloud, digital and technology operations, 3) tech native clients (Hyperscalars and SaaS companies), 4) deeper penetration in continental Europe and 5) growing high potential accounts ($10-50 Mn).
Our estimates remain unchanged. While we reduce our TP to Rs. 1780 (earlier: Rs1899) due to lower assigned P/E of 26x (earlier: 28x) factoring risk of slowdown in tech spends in wake of challenging macro environment. Infy is currently trading at 28x/22x on earnings of INR 57.8/68.4 for FY23/24E respectively with revenue and EPS CAGR of 12.6%/14.1% over FY22-24E. Maintain Accumulate.
Shares of Infosys Limited was last trading in BSE at Rs. 1478.90 as compared to the previous close of Rs. 1503.95. The total number of shares traded during the day was 435128 in over 26874 trades.
The stock hit an intraday high of Rs. 1514.00 and intraday low of 1471.60. The net turnover during the day was Rs. 649710127.00.