Infosys Q3 beats Street expectations: Should you buy, sell or hold?

SUMMARY

India's second-largest IT services company Infosys on Wednesday beat analyst estimates to report a 16.6 percent year-on-year (YoY) rise in consolidated net profit at Rs 5,197 crore for the December quarter. In the corresponding quarter last year, the company posted a net profit of Rs 4,466 crore. Its revenue grew 12.3 percent to Rs 25,927 crore and the firm increased its FY21 revenue growth guidance to 4.5-5 percent in constant currency terms. Most brokerages are very bullish on the stock after the earnings and have raised their target prices on the same. Here's what they have to say:

By CNBCTV18.comJan 14, 2021 9:40:54 AM IST (Published)

CLSA: The brokerage reiterated a 'buy' call on the stock and raised the target to Rs 1,620 per share from Rs 1,480 earlier. It said that the Q3 results indicate improved confidence in margin defense. It further added that Q3 momentum will help the firm exit FY21 at the high end of the guided range.

Edelweiss: The brokerage has a 'buy' call on the stock and raised its target to Rs 2,124 per share from Rs 1,850 earlier. It said that the company has delivered strong results and the management also remains confident of strength in business momentum and market share gains.

Credit Suisse: The brokerage has an 'outperform' rating on the stock and increased target to Rs 1,810 per share from Rs 1,450 earlier. It also raised FY21 earnings estimates by 3 percent and FY22-23 estimates by 6-7 percent.

Jefferies: The brokerage has a 'buy' call on the stock and raised its target to Rs 1,620 per share. It said that Q3 results beat estimates with revenue up 5.3 percent QoQ.