BackVaishali Parekh's technical pick is Infosys; check target price, stock performance, rationale details here
Infosys stock price has seen decent erosion after its weak Q4 numbers. However, the stock is indicating a consolidation and has maintained above ₹1,200 mark. Vaishali Parekh selects Infosys stock as her technical pick.
PremiumIT-giant Infosys stock price has corrected sharply since last month after feeble quarter earnings and concerns rising over the impact of the US and Europe banking crisis on the company. However, Vaishali Parekh believes that Infosys stock price has made decent erosion and indicated a consolidation as well. On Tuesday, the stock has gained by half a percent. But the key factor here is that Infosys has maintained above ₹1,200 levels.
On BSE, Infosys stock ended at ₹1,270.60 apiece up by ₹4.35 or 0.34%. The stock was near the day's high of ₹1,272 apiece.
Infosys is among the top five Indian companies in terms of market share. Its market cap as of May 9, 2023, stood over ₹5.27 lakh crore.
In March 2023 quarter, the tech major posted a consolidated PAT of ₹6,128 crore down by nearly 16% QoQ but up by nearly 6% YoY. Similarly, revenue from operations dipped by 2.2% QoQ but was higher by 16% YoY to ₹37,441 crore in the quarter. Also, Q4 year-on-year growth was 8.8% and the sequential decline was 3.2% in constant currency terms.
Read here: Birla Corp Q4 results: PAT dips over 23%; check details of dividend, NCDs issue, earnings report here
Further, the operating margin for the quarter was 21.0%. Free cash flow conversion was 95.3% for Q4. Continuing the recent trend, attrition declined further in Q4 to 20.9%. Infosys reduced its workforce by 3,611 employees to 3,43,234 headcount as of March 31, 2023.
Post the result, Infosys stock price has seen major erosions in stock price. Its monthly drop is nearly 11% on BSE, while the half-year (6 months) plunge is around 15.4%. Year-to-date, the stock is down by 16.6% to date. In a year, the downside is, even more, larger by 18.2%.
This makes Infosys stock price cheaper for more buying.
In a note dated May 9, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has witnessed a decent erosion recently and has indicated consolidation with support maintained near 1220."
She added, "Currently with the stock picking up gradually and with a move past the 1280 zone would further strengthen the bias to anticipate for an upward move in the coming days. "
Read here: Canara Bank share price dips 3% post Q4 numbers; Should you buy this Rekha Jhunjhunwala-backed stock?
Thereby, Parekh's note said, "With the RSI indicator showing significant pullback from the highly oversold zone has improved the bias to some extent. With the chart looking attractive, further rise is anticipated and we suggest to buy this stock for an upside target of 1420 keeping a stop loss of 1200."
The Prabhudas Lilladher expert sees a nearly 12% upside in Infosys stock price ahead.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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