Infosys share price hits fresh 52-week high after highest-ever deal wins of over $3 billion
- Infosys’ share price has hit a fresh 52-week high after posting blockbuster earnings on October 14.
- It raked in deal wins worth $3.15 billion in the last three months, including its largest ever deal with Vanguard.
- The company has also revised its annual revenue guidance to between 2% to 3%.
AdvertisementInfosys share price hit a fresh 52-week high at ₹1,185 when markets opened this morning. Its share price was up by 4% after India’s second-largest IT company posted its highest-ever deal wins in a quarter of over $3 billion.
However, the share price soon dipped sharply due to market weakness and profit booking. This is the second time this week that Infosys has hit a new high for the year. On Monday, its share price rallied to hit ₹1,146.50.
Analysts remain optimistic, upgrading their previous outlooks.
|Brokerage on Infosys||Target price|
|Motilal Oswal Securities||₹ 1,355|
|ICICI Securities||₹ 1,350|
|JM Financial||₹ 1,260|
|BOB Capital Markets||₹ 1,210|
The coming quarter may be stronger with Infosys increasing its annual revenue guidance to be between 2% to 3% for the current fiscal. According to JM Financial, the company’s deal wins are likely to keep the momentum going over the next six months. “Infosys remains our top pick in the sector,” said the brokerage’s report.
The company quarterly revenue was up by 4% in constant currency (CC) beating most market estimates.
Margins also expanded to 25.3%, increasing by a massive 270 basis points. However, accounting for impact on margins due to wage hikes, promotions and hiring as well as currency fluctuations, JM Financial estimates that Infosys may end the year at a lower threshold.
“We note that Infosys is likely to end F21 with margins nearly back to FY18 levels after the investment made through FY18-20,” said its report.
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