Infosys reported a consolidated net profit of Rs 3,597 crore for the quarter ended March 2016. Experts are bullish on Infosys shares from here onwards, advising intra-day traders to hold.
Infosys shares may see a gap-up opening on Monday after better-than-expected financial result for the quarter ended March 2016. India’s second largest IT services firm on Friday reported a consolidated net profit of Rs 3,597 crore for the quarter ended March 2016 against Rs 3,465 crore in the sequential quarter ended December 2015. Net profit was Rs 3,097 crore in the corresponding quarter last year. Market experts are bullish on Infosys shares from here onwards, advising intra-day traders to hold.
The company is expecting a revenue growth between 11.5 per cent and 13.5 per cent in constant currency terms in the current year – indicating a faster growth rate. In dollar terms, the company expects revenue to grow between 11.8 percent and 13.8 percent.
Post Q4 results, Chandan Taparia, derivatives & technical analyst, equity research, Anand Rathi Financial Services, said, “Infosys shares are set for a gap up opening on Monday after Q4 results. Overall, we are bullish on Infosys shares and see a jump of 4-5 per cent from here onwards in upcoming trading sessions. Intra-day traders can hold shares.”
In the past one year, the share price of the software major advanced 4.69 per cent to Rs 1,172 on April 13, whereas BSE Sensex fell 11.77 per cent during the same period.
Analysts find the Infosys fourth quarter earnings better than expectation. G Chokkalingam, founder, Equinomics Research & Advisory said, “If you look at the revenue guidance in dollar terms it is better than Nasscom which is positive. Overall, I am bullish on Infosys shares post Q4 results and believe that they can touch Rs 1,300 in the next few quarters. Intra-day trader can hold shares of Infosys.”
Infosys CEO Vishal Sikka has set a goal to raise the company’s revenue to $20 billion by 2020, which he reiterated on Friday. It posted sales of $9.5 billion for 2015/16.
For investors, Nirdosh Gaur, managing director and CEO, Moneypalm, said, “Infosys has given better than expected results for Q4 of FY2015-16. Infosys is having cash and cash equivalents of Rs 32,697 crore at the end of FY 2015-16 which can be used for the purpose of buy back and acquisitions in current FY. We are expecting that Infosys stock price will move up in coming months and Infosys will fare better than other IT stocks in market and we are expecting a price of Rs 1,300-1,350 in next 4-5 months.”