The share price of Infosys, one of India’s leading IT giants, has recently experienced fluctuations, causing investors to ponder whether they should buy, sell, or hold onto the stock. After Infosys announced its second-quarter results, its stock price fell by 4.46% to Rs 1,400 during early trading on Friday.
Let’s delve into the details and explore whether Infosys shares hold promise for investors.
Infosys Q2 Performance Overview
In its second-quarter results, Infosys reported a 3.2% growth in its net profit, which amounted to Rs 6,212 crore, in comparison to the previous year. The company’s revenue from operations also exhibited positive growth, with a 7.5% year-on-year increase, reaching Rs 11,963 crore from Rs 11,126 crore.
The company additionally announced an interim dividend of Rs. 18 per equity share, reflecting its commitment to providing returns to its shareholders.
Infosys shares have experienced some volatility recently. Over the last five days, the stock price has fallen by 3.67%, and over the past month, it has seen a decline of 5.11%. However, in a broader timeframe, Infosys shares have gained 2.47% over the last six months and 0.29% over the last year.
Given these fluctuations, investors might be contemplating the future of Infosys shares. To make an informed decision, let’s take a look at recommendations from financial experts:
- Motilal Oswal Financial Services: BUY – Target Price: Rs 1,660
- Despite a slight reduction in its FY24 revenue growth guidance, Infosys maintained its margin targets, indicating resilience in challenging times.
- The firm anticipates FY24 revenue growth of 2.4% and views Infosys as a key beneficiary of the expected acceleration in IT spending in the medium term.
- Based on their estimates, Infosys is currently trading at 21x FY25E EPS. They value the stock at 24x FY25E EPS, implying a target price of Rs 1,660.
- Choice Broking: ADD – Target Price: Rs 1,655
- Notably, Infosys secured significant large deals, which lay a strong foundation for future growth.
- The adoption of the Generative AI solution, Topaz, plays a crucial role in delivering consistent value and expanding market presence.
- Deal wins and a focus on cost optimization instill confidence in the long-term growth prospects.
- Choice Broking maintains an ADD rating with a revised target price of Rs 1,655, implying a PE of 24x on FY26E EPS of Rs 76.9.
While Infosys shares have witnessed recent volatility, the company’s overall performance appears promising. It is crucial for investors to assess their risk tolerance, investment horizon, and financial goals before making any decisions. Consulting with a financial advisor can provide valuable insights tailored to individual circumstances.