Apr 16, 2018 04:43 PM IST | Source: Moneycontrol.com

Buy Infosys; target of Rs 1169: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Infosys has recommended buy rating on the stock with a target price of Rs 1169 in its research report dated April 13, 2018.

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Prabhudas Lilladher' research report on Infosys


Infosys 4QFY18 results were a mixed bag. Revenues at USD2805mn were up 1.8% QoQ and marginally below our estimates (Ple: USD2824mn). Constant currency growth for the quarter stood at 0.6% below our estimates (Ple: 1.5% cc growth).  EBIT margin came at 24.7% up 40bps QoQ and above our estimates (PLe: 24.6%). PAT for the quarter came at Rs36.9bn marginally below our estimates owing to lower other income (PLe: Rs37.4bn).

Outlook

While Rs26bn has been earmarked for special dividend (to be given in June), we believe Infosys could only do a Buy back post Dec 15, 2018 (completion of one year from earlier Buyback).  Retain TP at Rs1220/sh (16x FY20E EPS vs 15.5x FY20 EPS earlier) and maintain BUY.

For all recommendations report, click here


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