R K Global has maintained hold rating on Infosys with a revised target price of Rs 2945 in its October 12, 2011 research report.
“Infosys honored our expectation and has reported stable Q2FY’12 numbers. Revenues rose ~17% YoY at Rs 80,990 mn and ~8% QoQ on the back of depreciating INR and stronger focus on cost-cutting application for its clients. The company’s revenue rode past our Q2FY’12 forecasted figure of Rs 79,341 mn. Revenue numbers are in line with our forecasted figures as we projected in our stock update report on 27th Sep’11. However, we believe that, this set of numbers is quite co-axial to the global downturns that have dominated the entire period of Q2FY’12. The company has been re-organized to be more industry domain-focused, which will accelerate innovation and lead to some strategic changes that could re-consider geographic segment concentrations for better performance in Q2FY’12.”
“EBITDA clocked at Rs 26,680 mn, up ~13% YoY and also rise by ~11.3% sequentially. Though, the there was an impact on account of increase in offshore wages by 10-12%, and onsite by 2-3% but the gain from stronger USD subsided the wage impact. The company guided that the margins could decline by around ~0.85% for FY’12E. The company believes that the global macroeconomic environment is still uncertain and might see some negative impact on the margins in the FY’12E results. NPAT stands at Rs 19,060, a YoY growth of ~9.7% but fell sequentially by ~0.98%. NPATM stands at ~24%, lower by ~150 bps. EPS stands at Rs 33.3 as against Rs 30.4 YoY, a growth of ~9.7%. Our estimates were on the higher side at Rs 37.”
“At CMP of Rs 2679, the stock trades at a P/E of 14.8x & a P/BV of 4.1x of our FY’13E EPS of Rs 181 and BVPS of Rs 644. We remain fairly even on our revised target price of Rs 2945 (P/E of 16.2x & P/BV of 4.5x using FY’13E EPS of Rs 181and BVPS of Rs 644) maintain HOLD (potential upside of ~9%) and believe that the momentum gained by INR depreciation (throughout the period of Q3FY’12E) will lead to a bulls-eye view on the stock,” says R K Global research report.
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“Infosys honored our expectation and has reported stable Q2FY’12 numbers. Revenues rose ~17% YoY at Rs 80,990 mn and ~8% QoQ on the back of depreciating INR and stronger focus on cost-cutting application for its clients. The company’s revenue rode past our Q2FY’12 forecasted figure of Rs 79,341 mn. Revenue numbers are in line with our forecasted figures as we projected in our stock update report on 27th Sep’11. However, we believe that, this set of numbers is quite co-axial to the global downturns that have dominated the entire period of Q2FY’12. The company has been re-organized to be more industry domain-focused, which will accelerate innovation and lead to some strategic changes that could re-consider geographic segment concentrations for better performance in Q2FY’12.”
“EBITDA clocked at Rs 26,680 mn, up ~13% YoY and also rise by ~11.3% sequentially. Though, the there was an impact on account of increase in offshore wages by 10-12%, and onsite by 2-3% but the gain from stronger USD subsided the wage impact. The company guided that the margins could decline by around ~0.85% for FY’12E. The company believes that the global macroeconomic environment is still uncertain and might see some negative impact on the margins in the FY’12E results. NPAT stands at Rs 19,060, a YoY growth of ~9.7% but fell sequentially by ~0.98%. NPATM stands at ~24%, lower by ~150 bps. EPS stands at Rs 33.3 as against Rs 30.4 YoY, a growth of ~9.7%. Our estimates were on the higher side at Rs 37.”
“At CMP of Rs 2679, the stock trades at a P/E of 14.8x & a P/BV of 4.1x of our FY’13E EPS of Rs 181 and BVPS of Rs 644. We remain fairly even on our revised target price of Rs 2945 (P/E of 16.2x & P/BV of 4.5x using FY’13E EPS of Rs 181and BVPS of Rs 644) maintain HOLD (potential upside of ~9%) and believe that the momentum gained by INR depreciation (throughout the period of Q3FY’12E) will lead to a bulls-eye view on the stock,” says R K Global research report.
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