Views on Infosys Update: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - IT, Angel Broking) on Infosys Update

"According to reports, Infosys is said to be confident of beating Nasscom's guidance for FY2016 (which is expected to be US$ yoy growth of 12-14%) on back of improved percentage of deals won in the last 10-12 weeks. Mr. Vishal Sikka reiterated his key focus in the last 10 months has been on operational rigour and client accounts. He mentioned that the company's new strategy is already paying off with significant improvement in the percentage of order wins. Infosys is said to have won 6 deals of over US $50mn each in the last 10-12 weeks. On attrition, the company mentioned that it is working on stock option plan.

With these wins, we upgrade our numbers on the stock, though still conservatively expecting the FY2016 and FY2017 revenues to post a US$ growth of 10.7% and 11.2% respectively. Even at these assumptions, the company is trading at attractive valuations of 15.4xFY2017E earnings. We maintain our BUY rating with a price target of INR 2630."

Shares of INFOSYS LTD. was last trading in BSE at Rs.2012.1 as compared to the previous close of Rs. 2028.05. The total number of shares traded during the day was 119921 in over 6928 trades.

The stock hit an intraday high of Rs. 2044 and intraday low of 2009.15. The net turnover during the day was Rs. 242291659.

Source : Equity Bulls

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