Sharekhan's research report on Infosys
Infosys’ strategic investments in Cloud, data, and experience have been yielding results, which are being reflected from digital revenue growth of 7.6% CQGR since Q1FY2018. Revenue growth in FY2022E would be driven by 1) higher demand for digital transformation initiatives, 2) increasing core transformation, 3) continued strong deal wins, 4) better pricing for the digital portfolio, and 5) robust deal pipeline. Margin headwinds would be offset to some extent because of higher offshore mix, automation, improving onsite employee pyramid, lower sub-contractor expenses, and better pricing in digital offering.
Outlook
We retain our Buy rating on Infosys with a price target to Rs. 1,650, given higher demand for digital and Cloud transformation initiatives and strong deal pipeline.
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