INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Infosys audit committee's clean chit to the top leadership, including CEO Salil Parekh, in the whistleblower case will likely
give the company's shares a gap-up start on Monday.
Analysts said a 5-10 per cent upside in the stock in the near term cannot be ruled
out.
The risk-reward looks favourable for Infosys, which trades at nearly 30 per cent discount to peer TCS, said HDFC Institutional Equities
Brokerage Sharekhan valued Infosys at 18 times FY2020 earnings and its discount to TCS at 26 per cent
It expects Infosys to narrow down this discount to some extent.
But for the next 12-months, the key to the stock outperformance will be the
performance of its BFSI vertical in March quarter, which will be the first quarter for most BFSI clients
Sameer Kalra, founder of Target Investing, says he is not surprised by the audit panel report
"What matters more is how the case concludes with the US regulator and Sebi," he said.
The scrip is up 8.6 per cent in last one year against
against CFO Nilanjan Roy for alleged financial malfeasance
Infosys said it would keep cooperating with the investigations by the US Securities and Exchange Commission (SEC) and Sebi, but refrained
We are giving them full cooperation and we are keeping them fully up-to-date
And we will take those discussions to the logical conclusion
Infosys' American depository receipts (ADRs) rose 1.62 per cent to $10.65 in overnight trade on Nasdaq.
Sharekhan expects Infosys to
outperform TCS in terms of revenue growth and gain market share in digital business
for CY2020 due to upcoming US elections would be a key thing to watch for in Q4 results
a greater focus on large deals, pricing lever in digital space, completion of accelerated investment phase and multiple levers to keep
performance in Q4 holds key to the stock movement.
Infosys has upgraded its FY20 revenue growth guidance band to 10-10.5 per cent in
constant currency terms from 9-10 per cent earlier
It has maintained its EBIT margin guidance at 21-23 per cent for the year.