Infinite Computer Solutions India Ltd - Strong operating performance, retain BUY - Emkay

Reco: BUY
CMP: Rs 106
Target Price: Rs 140

- Infinite's June'12 qtr performance beat estimates with ~11% QoQ US$ revenue growth and margins improving by ~130 bps QoQ despite wage hikes/strong emp addition (+9% QoQ).

- Top 5/10 clients grow by 12/9% QoQ with nearly all the sequential revenue increase led by Telecom & Media vertical and onsite revenues(+14.4% QoQ).

- Company maintains it's 'relatively aggressive' 20% YoY US$ FY13 revenue guidance, which implies an CQGR of ~8%( V/s 9% earlier) for Q2-Q4FY13. EPS outlook retained at ~Rs 34.

- Tweak FY13E EPS higher by 4% to Rs 31.7. Introduce FY14 earnings at ~Rs 35. Retain BUY with a revised TP of Rs 140 ( V/s Rs 120 earlier).

Source : Equity Bulls

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