Infosys likely to outgrow TCS in FY21: Emkay Research

MUMBAI: Information technology major Infosys could overtake Tata Consulting Services (TCS) in growth for the second year in a row in financial year 2021, Emkay research said Thursday.

Infosys has said that it is looking to grow on “four pillars” in the coming years. The company said that it is scaling the agile digital business, energising clients’ core technology landscape through artificial intelligence and automation, reskilling its employees and expanding in the US, Europe and Australia.

“Infosys is likely to outgrow TCS for the second year in a row in FY21 while narrowing margin differential. We expect Infosys’ valuation gap with TCS to narrow down further on the back of sustained strong operating performance,” Emkay Research said.

Infosys has managed robust pipeline of large deals and has also reaffirmed its next financial year’s revenue growth outlook and EBIT margins, Emkay said.

Stock of Infosys was down by Rs 4.85 or 0.43 per cent on Thursday to close at Rs 1,117.75. In comparison TCS was down by 0.66 per cent or Rs 17.85 to close at Rs 2670.70.

Based on their Thursday’s stock price the total market capitalisation of Infosys stood at Rs 4,76,095.77 crore while that of TCS was Rs 10,02,149.38 crore.