Infosys share price hits record high for 2nd straight day, surges 7% in 9 days; may rally over 8% more

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June 17, 2021 2:56 PM

Infosys share price surged over half a per cent to a new record high of Rs 1,492 apiece in intraday on BSE.

From giving guidance to furnishing detailed information on the business, Infosys was a trendsetter; its mantra was to under-promise and over-deliver and that soon made it the darling of the Indian stock market.From giving guidance to furnishing detailed information on the business, Infosys was a trendsetter; its mantra was to under-promise and over-deliver and that soon made it the darling of the Indian stock market.

Infosys share price surged over half a per cent to a new record high of Rs 1,492 apiece in intraday on BSE. The stock has surpassed its previous high of Rs 1,489.40, touched on Wednesday. The stock has gained for the nine consecutive sessions, rising 7.3 per cent. Analysts see another 8.5 per cent upside in the stock from the current levels. Infosys has broken out of the supply zone of 1450-1470 now the same area will become support, said an analyst. “On the higher side, the stock may zoom up to 1560-1610. On the lower side, one should maintain a stop loss of 1420,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online.

IT bellwether’s board of directors meeting is scheduled on July 14, 2021, to consider and approve the audited consolidated financial results of the company for the quarter ending June 30, 2021. Brokerage firm Axis Securities in its Annual Analysis 2021, has recommended to ‘buy’ Infosys, with a target price of Rs 1,620 apiece, implying a rally of 8.6 per cent from current level. Infosys’ deal wins for FY21 stood at $14.1 billion, showcasing a growth of 17 per cent on-year and the highest ever in the history of the company.

The management has guided double-digit growth in FY22 in the backdrop of robust deal wins. “Additionally, higher offshoring, better utilization, and lower attrition are likely to result in operating margin expansions in the near term. We recommend a BUY rating on the stock and assign a 26 x P/E multiple to its FY23E earnings of Rs 61.9/share to arrive at a TP of Rs 1,620/share,” it added.

In traded volume terms, so far 1.76 lakh shares have traded on BSE, while a total of 54.56 lakh shares have exchanged hands on NSE so far intraday. Infosys had announced buyback of shares after the last quarterly results which instilled the confidence in the investors that the company is bullish on its growth, and this led the investors to look at the stock as a good buying opportunity for short term gains, said Ashish Biswas, CapitalVia Global Research. “At the current situation the stock looks overbought on the charts and would be advisable to partially book the position and wait for another dip till the level of 1390-1410 to accumulate more shares,” Biswas told Financial Express Online.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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