Infosys stock is facing pressure in trade on Friday after the IT major came out with its fourth quarter earnings for FY26 on Thursday. While the numbers were largely in line, subdued growth on full-year terms, coupled with weak guidance, led multiple brokerages to issue target price cuts.
As a result, the stock is trading at Rs 1,166, accounting for cuts of more than 6% compared to Thursday's closing price of Rs 1,240. Since the turn of the year, the stock has fallen as much as 27% amid sustained weakness in discretionary demand and AI-led disruptions.
Infosys shares have faced further pressure on account of its weak Q4 earnings and the subsequent target price cuts from a slew of brokerages, including the likes of Kotak Securities, Jefferies and Citi.
Most brokerages have highlighted subdued growth and weak guidance. The investor sentiment was further impacted by the company's refusal to share AI-revenue numbers, even as the management reiterated strong growth in the segment.
Should You Buy, Sell Or Hold Infosys?
Having fallen significantly in the last four months or so, shares of Infosys are currently trading at a relative strength index of 43, which suggests neutral market sentiment.
But despite the recent drawdowns, G Chokkalingam, Founder & MD, Equinomics Research, has given a 'buy' recommendation on the counter.
"We are positive and maintain a buy recommendation. Pessimistic outlook of the IT industry is reflected in its stock price. Around 17 Pe is quite reasonable to buy the stock, which still maintains good return ratios and a dividend yield of around 3.5%," he said.
ALSO READ: Infosys Q4 Result Review: Brokerages Cut Target Prices Citing 'Subpar' Growth
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