Infosys share price hit a lower circuit on Monday, tanking 10% to Rs 1,250.30 on NSE after the IT giant’s Q4 results missed market estimates. Infosys reported its fourth quarter revenue of Rs 37,441 crore, down 2.3% from Rs 38,318 crore in the previous quarter, with a net profit of Rs 6,128 crore. According to analysts and brokerage firms, the IT firm was expected to clock a profit rise in the range of 14.2- 21.7 per cent on-year during the March quarter.
On Monday, domestic indices NSE Nifty and BSE Sensex opened with sharp cuts. The Nifty 50 fell 197.50 pts or 1.11% to 17,630.50 and BSE Sensex tanked 744.73 pts or 1.23% to 59,686.27. In sectoral indices, Bank Nifty was down 39.70 pts or 0.09% to 42,092.85, Nifty IT tanked 1,702.85 pts or 6.01% to 26,639.95. All the constituents on the IT index were trading in the red. The top losers were Infosys, Persistent Systems, LTIM, LTTS and Coforge.
Should you Buy, Hold or Sell Infosys shares?
Reliance Securities: Sell – Target Price: Rs 1350
“In view of rising concern on the global slowdown and delayed decision-making in the US, we remain cautious. Due to lower earnings growth and valuation, we downgrade INFO to SELL from BUY with a revised TP of Rs1,350, (vs. earlier Rs1,750), valuing the stock at a revised P/E multiple of 18x on FY25E earnings (vs. earlier 22x),” said analysts at Reliance Securities.
Philip Capital: Buy – Target Price – Rs 1590
“Given the uncertain environment in the near term, growth can be back-ended for Infosys, in our view. We believe the stock can remain under pressure in the near term until clarity emerges on growth. Post initial reaction, we believe the risk-reward will become favourable given Infosys has underperformed Nifty IT by 7% in the last three months and valuations are below its five-year median 1-year forward PE (22x). Maintain BUY,” said analysts at Philip Capital.