Neutral Infosys; target of Rs 1659: Arihant Capital

Neutral2

Arihant Capital’s research report on Infosys Infosys(INFY)has actually reported weak Q4FY22 numbers, below our estimate on all fronts; Raised profits assistance but decrease in margin guidance band for FY23. Continuous Currency Earnings development +18.5% YoY/0.7% QoQ to $4,280 mn against our price quote $4,352 mn. Infosys has reported consolidated revenue of INR 32,276 Cr, +22.7% YoY/1.3% QoQ in Q4FY22 versus our quote of INR 32,658 cr supported by continued momentum in large offer wins with TCV of $9.5 billion. Consolidated EBIT stood at INR 6,956 Cr, up by 8% YoY/ -7.1% QoQ versus our quote of INR 7,527 Cr. On the margins front, EBIT margin contracted by 292 bps YoY/ 193bps QoQ to 21.6% versus our quote of 23.0%. Consolidated PAT stood at INR 5,695 Cr, up by 12.2% YoY/2.2% QoQ against our quote of INR 6,082 Cr. Added 85,000 betters in FY 22, will add over 50,000 freshers in FY23.Attrition zooms to 27.7% ìn Q4. Raised revenue development guidance to 13-15% in cc terms. (Expected 11- 14%). and running margin guidance of 21%-23% for FY23. TCV of large offer wins was $2.3 billion in Q4. The company net included 85,000 workers in FY22. It plans to employ upwards of 50,000 staff members in FY23.Outlook Thinking about expensive appraisals and margin pressure, we value Infosys at a P/E of 24x to its FY24E EPS of INR 69.1, which yields a Target Cost of INR 1,659 per share. We downgrade our score to Neutral from Accumulate previously on the stock.More Info At 17:30 Infosys was estimating at Rs 1,748.65, up Rs 7.20, or 0.41 percent.It has touched an intraday high of Rs 1,759.45 and an intraday low of Rs 1,732.25. It was trading with volumes of 201,207 shares, compared to its thirty day average of 359,607 shares, a reduction of -44.05 percent.In the previous trading session, the share shut down 1.43 percent or Rs 25.20 at Rs 1,741.45. The share touched its 52-week high Rs 1,953.70

and 52-week low Rs 1,311.80 on 17 January, 2022 and 14 Might, 2021, respectively.Currently, it is trading 10.5 percent below its 52-week high and 33.3 percent above its 52-week low.Market capitalisation stands at Rs 735,611.35 crore.For all suggestions report, click here Disclaimer: The views and financial investment pointers revealed by financial investment experts/broking houses/rating companies on moneycontrol.com are their

own, and not that of the site or its management. Moneycontrol.comencourages users to talk to qualified experts before taking

any investment decisions.Download your cash calendar for 2022-23 here and keep your dates with your moneybox, financial investments, taxes Find out more Released at Sat, 16 Apr 2022 05:43:07 -0400