PINC Research is bullish on Infosys and has recommended buy rating on the stock with a target of Rs 2730 in its October 12, 2011 research report.
“Infosys, rupee revenue was higher than expectation at Rs80,990mn. Consolidated IT services has shown 5.1%QoQ growth with 4.5%QoQ volume growth and 0.5%QoQ blended pricing growth. EBIT margin was in-line with expectation at 28.2%. PAT was higher than consensus at Rs19,060mn. EPS was Rs33.4 (10.7%QoQ). US revenue grew 6.3%QoQ, Europe was muted with 0.6%QoQ growth. India revenue at small base declined 11.6%QoQ. BFSI grew 4.2%QoQ with BFS growing 4.9%QoQ and Insurance growing 1.6%QoQ. Manufacturing grew 4%QoQ. Retail and Life Sciences grew 5.4%QoQ with strong growth in Life Sciences and Healthcare (71%QoQ growth with 1.8% revenue contribution) on a small base. Energy, Utilities and Communication grew 4.5%QoQ.”
“New addition has been significant at 45 in Q2FY12 compared to 26 in Q1FY12 and 27 in Q2FY11. Top client revenue grew 6.8%QoQ, top-5 clients and top-10 clients revenue grew 4.5%QoQ, each. Employee strength increased 6.2%QoQ to 141,822. Significant gross addition of 15,352 taking the total in H1FY12 to 25,274. Attrition declined 20bpsQoQ to 15.6%. Utilisation (including trainees) increased 60bpsQoQ to 70.2%. The profitability guidance is robust as the EPS guidance in dollar terms has been raised and EPS guidance in INR terms has been increased significantly also due to higher INR/USD expectation (48.98 compared to 44.5 earlier). Will revisit estimates post the concall. We maintain our ‘BUY’ recommendation on the stock with a target price of Rs 2730 based on 17.5xFY13E earnings,” says PINC Research report.
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“Infosys, rupee revenue was higher than expectation at Rs80,990mn. Consolidated IT services has shown 5.1%QoQ growth with 4.5%QoQ volume growth and 0.5%QoQ blended pricing growth. EBIT margin was in-line with expectation at 28.2%. PAT was higher than consensus at Rs19,060mn. EPS was Rs33.4 (10.7%QoQ). US revenue grew 6.3%QoQ, Europe was muted with 0.6%QoQ growth. India revenue at small base declined 11.6%QoQ. BFSI grew 4.2%QoQ with BFS growing 4.9%QoQ and Insurance growing 1.6%QoQ. Manufacturing grew 4%QoQ. Retail and Life Sciences grew 5.4%QoQ with strong growth in Life Sciences and Healthcare (71%QoQ growth with 1.8% revenue contribution) on a small base. Energy, Utilities and Communication grew 4.5%QoQ.”
“New addition has been significant at 45 in Q2FY12 compared to 26 in Q1FY12 and 27 in Q2FY11. Top client revenue grew 6.8%QoQ, top-5 clients and top-10 clients revenue grew 4.5%QoQ, each. Employee strength increased 6.2%QoQ to 141,822. Significant gross addition of 15,352 taking the total in H1FY12 to 25,274. Attrition declined 20bpsQoQ to 15.6%. Utilisation (including trainees) increased 60bpsQoQ to 70.2%. The profitability guidance is robust as the EPS guidance in dollar terms has been raised and EPS guidance in INR terms has been increased significantly also due to higher INR/USD expectation (48.98 compared to 44.5 earlier). Will revisit estimates post the concall. We maintain our ‘BUY’ recommendation on the stock with a target price of Rs 2730 based on 17.5xFY13E earnings,” says PINC Research report.
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