IT Giant Infosys Ltd recently presented its shareholding pattern for the quarter ending March 31, 2023, and the Life Insurance Corporation (LIC) increased its stake in the company.
As per the shareholding pattern of the company, LIC holds 29,82,44,977 equity shares or 8.19 percent in Infosys as of March 31, 2023. This indicates that it has increased its stake from 7.71 percent or 28,13,85,267 shares held as of the December quarter of 2022.
At 11:42 AM on Thursday, Infosys’ shares were trading marginally lower at ₹ 1,231.35 apiece on the National Stock Exchange (NSE). In the past five days, it has lost 12.61 percent, led by a major fall following the announcement of its quarterly earnings and revenue guidance.
The company’s revenue from operations rose 16 percent to ₹ 37,441 crores for the quarter that ended on March 31, 2023, against ₹ 32,276 crores in the corresponding quarter last year. Its profit grew 7.71 percent to 6,134.00 crores in the March quarter of the financial year 2023 from ₹ 5695.00 crores reported in the same quarter a year ago.
Infosys missed the street’s expectations and further disappointed it, by saying that it expects constant currency revenue growth of 4-7 percent, which is lower than the 6-8 percent estimate.
Infosys is an IT company that provides consulting, technology, outsourcing and next-generation digital services. With a market capitalization of ₹ 5,20,916 crores, it is a large-cap blue chip stock. It has a high return on equity of 31.97 percent, an ideal debt-to-equity ratio of 0.11 and a good dividend yield of 2.76 percent. Its shares were trading at a price-to-earnings ratio of 21.41, which is lower than the industry P/E of 28.18, indicating that the stock might be undervalued, compared to its peers.
Meanwhile, ICICI Securities has a buy call on the shares of Infosys with a target price of ₹ 1,641 apiece. This translates to an upside of 33.27 percent as compared to its share price of ₹ 1,231.35.
Written by Simran Bafna