Infosys - Reversion to mean margins possible? - Emkay

- Our recent discussions with investors after the release of our sector note, which indicated that Infosys could see a 'reversion to mean' margins over the next few quarters have produced mixed response

- We analyse possible levers at Infosys and expect these initiatives could aid its margins by 400-600bps at steady state. Some of the steps are more internal to the company and less dependent on the external environment

- We retain a BUY on Infosys with a TP of Rs 3,650 based on 17x FY15 and ~15x FY16 earnings.

Source : Equity Bulls

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