PINC Research is bullish on Infosys and has recommended buy rating on the stock with a target price of Rs 2,950 in its October 12, 2011 research report.
“Infosys, USD revenue grew 4.5%QoQ to USD 1,746 mn. INR revenue grew 8.2%QoQ to Rs 80,990 mn (Consensus est. Rs 80,615 mn). EBIT margin improved 209bpsYoY to 28.2%. PAT was Rs 19,060 mn (Consensus est. Rs 18869 mn) and EPS was Rs 33.4. The marginal downward revenue guidance from earlier 18-20%YoY growth to 17.1-19.1%YoY growth. The volume assumption has been kept same as the spending is expected to happen and the management does not expect program cancellations. Management has indicated no pricing pressure. Volume for IT services grew 4.5%QoQ and reported pricing increased 0.5%QoQ. Two deals were won each in business operations (both in BFSI vertical) and business transformation (both in manufacturing vertical). Currently, 10-12 large deals are in pipeline with an incubation period of 9-12 months. We have factored in average INR/USD rate of 47.25 for FY12 and 46.5 for FY13 in our model.”
”The profitability guidance has increased due to positive impact of rupee depreciation. The business confidence is reflected in strong gross addition target of 45k in FY12 and campus hiring for FY13. We continue to remain positive and maintain BUY rating on the stock with a target price of Rs 2,950 based on 18x FY13E earnings,” says PINC Research report.
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“Infosys, USD revenue grew 4.5%QoQ to USD 1,746 mn. INR revenue grew 8.2%QoQ to Rs 80,990 mn (Consensus est. Rs 80,615 mn). EBIT margin improved 209bpsYoY to 28.2%. PAT was Rs 19,060 mn (Consensus est. Rs 18869 mn) and EPS was Rs 33.4. The marginal downward revenue guidance from earlier 18-20%YoY growth to 17.1-19.1%YoY growth. The volume assumption has been kept same as the spending is expected to happen and the management does not expect program cancellations. Management has indicated no pricing pressure. Volume for IT services grew 4.5%QoQ and reported pricing increased 0.5%QoQ. Two deals were won each in business operations (both in BFSI vertical) and business transformation (both in manufacturing vertical). Currently, 10-12 large deals are in pipeline with an incubation period of 9-12 months. We have factored in average INR/USD rate of 47.25 for FY12 and 46.5 for FY13 in our model.”
”The profitability guidance has increased due to positive impact of rupee depreciation. The business confidence is reflected in strong gross addition target of 45k in FY12 and campus hiring for FY13. We continue to remain positive and maintain BUY rating on the stock with a target price of Rs 2,950 based on 18x FY13E earnings,” says PINC Research report.
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