Research ReportsInfosys Q4 Results Review: IDBI Capital Revises Rating To 'Hold', Cuts Target Price
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Infosys Q4 Results Review: IDBI Capital Revises Rating To 'Hold', Cuts Target Price
While IDBI Capital retains a long-term constructive stance, but reduces Infosys' target price, reflecting prevailing challenges in terms of tariff, geopolitical uncertainties, and trade barriers.
Infosys reported a 4.2% QoQ topline decline in constant currency to $4,730 million, primarily driven by a reduction in third-party contributions and seasonal softness, says the brokerage. (Photo Source: Vijay Sartape /NDTV Profit)
Due to volatile demand environment, margins could see pressure and acquisition related costs which would be offset by ramp up in mega deals, no ramp down costs, lower third party costs, more headroom driven by project maximus, low ratio of AI driven efficiency to clients. Hence, the brokerage expects the margins to remain in the same band of 20-22%.