Home / Markets / Stock Markets /  Infosys hits 7 trillion in market cap for the first time

Mumbai: Infosys Ltd on Tuesday became the fourth Indian firm to hit 7 trillion in market capitalisation after its shares surged over 71% in the last one year.

The stock touched an all-time high of 1644.05 on BSE with a market cap of 7.01 trillion. The scrip was trading at 1644, up 0.7% from its previous close. So far this year it has gained over 31%.

Earlier, Reliance Industries Ltd, Tata Consultancy Services Ltd and HDFC Bank Ltd have achieved this milestone.

The stock has been gaining since the firm increased its fiscal year 2022 revenue guidance to 14-16% on a constant currency basis from 12-14% earlier. The firm maintained its operating margins guidance at 22-24%.

The firm on 18 July posted its first-quarter earnings with revenue rising by 18% to 27896 crore, aided by strong growth across segments. EBITDA grew 21.4% year on year due to an increase in revenue and a decline in employee expense. EBITDA margin expanded 70bps year on year to 26.6%. Net profit also increased to Rs. 5,195 crore up 22.7% from a year ago.

"Infosys has posted stellar Q1FY22 numbers. Management highlighted that cloud is becoming a strategic priority for all industries. We believe Infosys, given its strong presence in cloud and digital transformation, will remain a major beneficiary of this tech-upcycle which is going to last for three-four years", said Edelweiss Securities in a note to its investors.

During the quarter, the company won 22 large deals worth $2.6 billion, out of which nine were in financial services, four each in retail & energy, utilities, resources and services, two in manufacturing, and one each in communications, high-tech & life sciences segments.

"Infosys has emerged as a clear winner in accelerating adoption of IT megatrends and large cost-takeout projects catalyzed by COVID-19. Infosys has outperformed TCS on YY growth for 12 quarters in a row in June 2021. While this benefits all firms, its performance remains a standout and reiterates superior execution and recovering competitiveness that merits a re-rating, in our view" said JP Morgan in a report to its investors.

Of the 49 brokers tracking the Infosys stock on Bloomberg, 42 have recommended a buy rating, four have a hold on the stock and 3 have a sell rating.

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