Infosys Q3 Results Review — Broad Based Growth Persist; IDBI Capital Maintains 'Hold', Hikes Target Price

Due to ramp up of existing projects coupled with new mega deals, we believe Infosys will achieve higher end of the guidance in FY25E..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Infosys Ltd. posted above estimates dollar revenue of $4,939 million, up 1.7% QoQ. The broad based growth across verticals continue to persist in this quarter as well like Q2. This growth acceleration is on the back of improving discretionary spend (specifically in BFSI in US) and large deal ramping up and would continue to be the driving force. Coupled with client’s focus shifting on IT investments with focus on AI, cloud adoption, cybersecurity, data and analytics. Having said that, deal wins are majorly focused on cost optimization and vendor consolidation which would impact the margins. Factoring all the scenarios and pricing strategy, management has upgraded their revenue guidance for FY25 at 4.5%- 5% and margin guidance remained stable at 20-22%. Due to ramp up of existing projects coupled with new mega deals, we believe the company will achieve higher end of the guidance in FY25E. However, considering Q4 been soft for the company, we maintain Hold rating on the stock with target price of Rs 2,052 (27x FY27E EPS) versus previous target price of Rs. 1,995..Click on the attachment to read the full report:.Axis Bank Q3 Results Review — 'Hold' The Stock Says Systematix On Weak Performance; Revises Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Infosys Q3 Results Review — Broad Based Growth Persist; IDBI Capital Maintains 'Hold', Hikes Target Price

Infosys' deal wins are majorly focused on cost optimisation and vendor consolidation which would impact the margins, adds the brokerage.

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