Infosys shares rise over 1% ahead of Q4 results. Here's what analysts say | Mint
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Business News/ Markets / Stock Markets/  Infosys shares rise over 1% ahead of Q4 results. Here's what analysts say
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Infosys shares rise over 1% ahead of Q4 results. Here's what analysts say

Ahead of its fourth quarter results, shares of Infosys have an average price target of ₹1,720.36

Infosys is set to release its March quarter results on Thursday.Premium
Infosys is set to release its March quarter results on Thursday.

Shares of information technology services major Infosys rose during Wednesday's trading session a day before the IT company is scheduled to announce its financial results for the March quarter (Q4FY23) on Thursday, 13 April.

 

The script was trading 1.33 per cent higher at 1,424.90 per share at around 1:44 pm. Infosys has given 0.81 per cent returns to investors in the last one week. The stock hit 52-week high of 1759.45 on 13 April, 2022, and 52-week low of 1355.5 on 26 September, 2022.

Ahead of its fourth quarter results, shares of Infosys have an average price target of 1,720.36, as per publicly available data with Trendlyne, which suggests a 20.84 per cent potential upside on the counter.

Earnings preview

Infosys is expected to report around 15 per cent surge in year-on-year (YoY) net profit on a 20 per cent rise in net sales for the quarter ended 31 March, 2023. Ebit margin is likely to expand for the IT major, but marginally. Deal wins are expected to be flattish on a sequential basis.

Brokerages largely expect Infosys to guide for 5-8 per cent revenue growth in constant currency (CC) terms and 21-23 per cent Ebit margin for FY24. All eyes would be on large deals intake and update on client conversations.

Four of the six brokerage firms expect the company’s profit to decline QoQ in the March quarter. Kotak Institutional Equities expects a 3.1 per cent quarterly decline in profit, followed by Sharekhan at 1.4 per cent, HDFC at 0.8 per cent and Jefferies at 0.1 per cent.

Earlier, JP Morgan said it expects downside risks to demand and growth commentary for Infosys Ltd from financial year 2023-24. The global brokerage said that both TCS and Infosys have the highest exposure to regional banks in the US that are gripped by a financial turmoil.

India's IT industry is facing a challenging macroeconomic environment in its key markets of Europe and the US, where technology spending is contracting amid delays in decision-making on long-term deals.

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ABOUT THE AUTHOR
Meghna Sen
Business journalist tracking markets, companies, economy and crypto for Livemint. She has 6 years of experience with online and print publications. Email: meghnasen08@gmail.com
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Published: 12 Apr 2023, 02:06 PM IST
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