The revenue guidance for FY26 has been revised to 2%-3% growth in constant currency terms, up from the earlier guidance of 1%-3%. Additionally, Infosys aims to deliver sequential growth, factoring in all the seasonality and initiatives ahead amid ongoing uncertain times.
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Axis Securities Report
Infosys Ltd.'s sequential growth trajectory suggests a stable environment rather than an improving one. However, seasonal headwinds are expected to be reflected in H2 FY26 growth momentum rather than weakness in demand.
Management expects performance stability to be sustained going forward.
Therefore, considering its revised guidance, growth prospects, and attractive valuation. We recommend a Buy rating on the stock at 21x P/E multiple to its FY27E earnings to arrive at a target price of Rs 1,620/share, implying an upside of 10% from the current market price.
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