Infosys shares on Monday hit a 52-week low of Rs 1,185.30 on the NSE as the shares of India's second-largest IT company tanked 15% on below par Q4 earnings. The Bengaluru-based company missed Street estimates and reported an 8% year-on-year (YoY) growth in its net profit at Rs 6,128 crore, while revenue from operations jumped 16% to Rs 37,441 crore. Both revenue and profit figures were below the analysts' estimates.
An ET Now poll had projected the net profit to be around Rs 6,550 crore while the revenue figure was pegged at Rs 38,850 crore.
The results were announced after market hours on Thursday. Indian equity markets were closed for trading on Friday on account of Ambedkar Jayanti.
This is what top brokerages recommend on Infosys following Q4 numbers:
Jefferies: Buy | Target: Rs 1,570 | Upside: 13%
Despite calling Infosys’ January-March 2023 quarter results "shocking", Jefferies maintained a ‘Buy’ on the second-largest IT services company for a price target of Rs 1,570. The brokerage said that FY24 guidance suggests a weak demand outlook and therefore cut its FY24-25 estimates by 3-6%. It said that it sees potential stock fall on weak Q4 results as an attractive buying opportunity.
Key risks include weaker revenue growth, lower margin, unfavourable currency and corporate action, the brokerage said.