Motilal Oswal has buy call on Infosys Ltd. with a target price of Rs 1600. The current market price of Infosys Ltd. is Rs 1340.7.
Infosys Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 590868.73 Crore) operating in IT Software sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 25927.00 Crore, up 5.52 % from last quarter Sales of Rs 24570.00 Crore and up 12.28 % from last year same quarter Sales of Rs 23092.00 Crore. Company reported net profit after tax of Rs 5215.00 Crore in latest quarter.
Investment Rationale
As INFO has outperformed TCS in 9MFY21 and is on its way for industry leading performance in FY21 (among Tier I players), we expect the valuation divergence to narrow. Based on revised estimates, the stock is currently trading at 21x FY23E EPS. It values the stock at 24x FY23E EPS, implying a target price of INR1,600.
Promoter/FII Holdings
Promoters held 13 per cent stake in the company as of Sept 30, 2020, while FIIs held 31.7 per cent, DIIs 25 per cent and public and others 30.4 per cent.
Infosys Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 590868.73 Crore) operating in IT Software sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 25927.00 Crore, up 5.52 % from last quarter Sales of Rs 24570.00 Crore and up 12.28 % from last year same quarter Sales of Rs 23092.00 Crore. Company reported net profit after tax of Rs 5215.00 Crore in latest quarter.
Investment Rationale
As INFO has outperformed TCS in 9MFY21 and is on its way for industry leading performance in FY21 (among Tier I players), we expect the valuation divergence to narrow. Based on revised estimates, the stock is currently trading at 21x FY23E EPS. It values the stock at 24x FY23E EPS, implying a target price of INR1,600.
Promoter/FII Holdings
Promoters held 13 per cent stake in the company as of Sept 30, 2020, while FIIs held 31.7 per cent, DIIs 25 per cent and public and others 30.4 per cent.
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