Infosys Ltd - Keeps to the promise - Emkay

Reco: BUY
CMP: Rs 3128
Target Price: Rs 3800

- Revenues at US$ 2,066 mn (+3.8% QoQ) beat exp (Emkay est: +2.8% QoQ rev growth) albeit EBIT margins remains flat QoQ as S& M expenses increased 60 bps QoQ to 11.8%

- Operating metrics performance show return to consistency with broad based growth across verticals/geographies. Top 10 clients revenue growth highest in over 12 qtrs at ~6% QoQ

- Deal wins remain encouraging. See upsides to Infy's FY14 revised revenue growth guidance of 9-10%. We build in 12.3% US$ revenue growth for FY14

- Raise FY15/16E EPS by ~3% each led largely by higher rev assumptions (12.6% YoY growth V/s 11% earlier). Infosys remains the top pick in Tier I space as we continue to back ‘Return to Predictable ways' for Infosys.

Source : Equity Bulls

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