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    Add Infosys, target price Rs 1772: ICICI Securities

    Synopsis

    The brokerage expects Infosys EBIT margins to expand gradually from 21.2% in FY23E to 22% by FY26E on the back of various levers like pricing, utilisation, further optimization of employee pyramid, lower sub-contracting cost, automation and lower attrition.

    BuyThinkStock Photos
    With improvement in macro fundamentals over FY25E/FY 26E, we expect INFY’s high focus on growth & transformation agenda of clients to enable it to grow at 11.3% / 13.6% during FY25E / FY26E, a tad faster than TCS.
    ICICI Securities has add call on Infosys with a target price of Rs 1772. The current market price of Infosys is Rs 1591.75.

    Infosys, incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 663473.83 Crore) operating in IT Software sector.

    Infosys key Products/Revenue Segments include Software Development Charges and Software Products for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 39087.00 Crore, up 5.29 % from last quarter Total Income of Rs 37122.00 Crore and up 20.72 % from last year same quarter Total Income of Rs 32379.00 Crore. Company has reported net profit after tax of Rs 6586.00 Crore in latest quarter.

    The company’s top management includes Mr.Nandan M Nilekani, Mr.Salil Parekh, Ms.Kiran Mazumdar Shaw, Ms.Chitra Nayak, Mr.D Sundaram, Mr.Michael Gibbs, Mr.Uri Levine, Mr.Bobby Parikh. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2022, the company has a total of 419 Crore shares outstanding.

    Investment Rationale
    With improvement in macro fundamentals over FY25E/FY 26E, the brokerage expects Infosys high focus on growth & transformation agenda of clients to enable it to grow at 11.3% /13.6% during FY25E / FY26E, a tad faster than TCS. The brokerage expects Infosys EBIT margins to expand gradually from 21.2% in FY23E to 22% byFY26E on the back of various levers like pricing, utilisation, further optimization of employee pyramid, lower sub-contracting cost, automation and lower attrition.

    Promoter/FII Holdings
    Promoters held 15.11 per cent stake in the company as of 31-Dec-2022, while FIIs owned 36.29 per cent, DIIs 32.38 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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