Views on update of Infosys: Angel Broking

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

"Infosys in an update has mentioned that visa and compensation costs are likely to impact margins by 200bps in 1QFY2017. Company, while marinating that its margins in near term are likely stay pressured given the "commoditisation" that has taken place in the industry, and said they would pick up once investments into machine learning and automation fructify. Infosys however is confident of achieving its FY2017 revenue growth guidance of 11.5-13.5% in CC (constant currency) terms despite conceding that the overall revenue environment remains pressured. It believes that client spend on IT is not really increasing but given that there are always a case of one-two players growing significantly above industry average, the company expects to beat the Industry growth rate. Currently we are not changing our estimates and maintain our target of INR 1374."

Shares of INFOSYS LTD. was last trading in BSE at Rs.1185.45 as compared to the previous close of Rs. 1238.3. The total number of shares traded during the day was 495595 in over 25762 trades.

The stock hit an intraday high of Rs. 1228.9 and intraday low of 1181.1. The net turnover during the day was Rs. 591214031.

Source : Equity Bulls

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