Infosys Q4 Results Review - Improving Discretionary Spend To Be A Key Trigger: IDBI Capital

IDBI Capital Report

Infosys Ltd.'s Q4 FY24 numbers were below consensus estimates. The company has also guided subdued FY25E revenue growth (1%-3% YoY in constant currency terms) mainly due to lower discretionary spend, volatile demand environment and cost rationalisation at clients end.

Infosys continues to win vendor consolidation deals and cost efficiency deals. This coupled with strong large deal wins in FY24 ($17.7 billion, with 52% being net new) and ramp up of mega deals we believe the company will achieve higher end of the guidance in FY25E.

However, considering robust expectation in past we have tapered our earnings per share estimates lower by 4% and 6% in FY25E and FY26E respectively.

Hence we have lowered our target price to Rs 1,635 (22 times FY26E earnings per share) from Rs 1,730.

Further, considering recent fall in price we maintain our buy rating on the stock.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.