A large-cap IT stock gained 3.87 percent to reach an intraday high of ₹ 1,477.95 apiece after the company announced that it has entered into a framework agreement with one of its existing strategic clients to provide AI and automation-led development, modernization and maintenance services, with a targeted spend of $ 2 billion over a period of five years.
Infosys, however, did not disclose the client’s name in the above-mentioned deal. The IT major already won two major deals this year. The first deal is worth $1.5 billion with British oil and gas company bp to be their primary partner for end-to-end application services. The second deal, worth $454 million with Danske Bank is a strategic collaboration to accelerate the bank’s digital transformation initiatives with speed and scale.
The company has given a revenue growth guidance of 4-7 percent in constant currency terms for FY24 and an operating margin guidance of 20-22 percent. It will be announcing the results for the first quarter of the financial year 2023-24, on July 20, 2023, around 3.45 p.m. Indian Standard Time (IST).
In another development, it announced the successful completion of the foundation phase of a major digital program for Bendigo and Adelaide Bank, one of Australia’s biggest banks. This project was delivered in collaboration with Microsoft. It involved the consolidation of multiple legacy document management systems into a single enterprise document management system (EDMS) and deliver better customer service.
Earlier, ICICI Securities said that it has a buy call on the shares of Infosys with a target price of ₹ 1641.00. This translates to an upside of 11.36 percent as compared to its share price of ₹ 1,473.65 at 03:27 PM on Tuesday.
Infosys is one of the largest IT companies in India. It provides consulting, technology, outsourcing and next-generation digital services to enable clients to execute strategies for their digital transformation.
With a market capitalization of ₹ 5,88,820 crores, Infosys is a large-cap blue chip company. It has a high return on equity of 31.97 percent and an ideal debt-to-equity ratio of 0.11. Its shares were trading at a price-to-earnings ratio (P/E) of 24.72, which is lower than the industry P/E of 29.32, indicating that the stock might be undervalued as compared to its peers.
Foreign institutions hold a 35.08 percent stake in the company, followed by retail investors with 18.32 percent, mutual funds with 18.28 percent, promoters with 15.14 percent and other domestic institutions with 13.18 percent.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
