The shares of Infosys Limited were trading 1 per cent lower and closed at Rs 1,516 on Friday. The stock, like its peers in IT companies, has been on a downtrend for the last few months.
Recently SBI Mutual Fund bought an additional stake in the company. During the July to September 2022 quarter, they raised their shareholding in the IT company from 3.49 per cent to 4.33 per cent.
Taking advantage of the buying opportunities, other fund houses have also increased their stake in the company. UTI Mutual Fund raised its stake from 1.33 per cent to 1.63 per cent in the quarter. HDFC Mutual Fund also raised its stake from 1.31 per cent to 1.57 per cent in the company.
The stock reached its 52-week high of Rs 1,953.90 in January this year. Currently, it is trading at a discount of 23 per cent from those levels.
The Financial of the company on the other hand seem to be improving. In Q2FY23, the company reported an increase of 23 per cent in its total revenue which stood at Rs 36,538 crore up from Rs 29,602 crore in the previous year.
In the quarter under review, their net profit stood at Rs 6,021 crore, up 11 per cent Year on Year (YoY) from Rs 5,421 crore.
Adding to the list of positive news, the board of the company approved the buyback of shares worth Rs 9,300 crore at Rs 1,850 a share. The shares will be bought at a premium of 22 per cent from the current levels.
Edelweiss has a ‘Buy’ call on the stock with a target price of Rs 1,891 per share which represents an upside of 24% from the current levels.
Infosys Limited is an Indian multinational information technology company that provides consulting, technology, outsourcing, and next-generation digital services to enable clients to execute strategies for their digital transformation.
Written by Anoushka Roy
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