Infosys share price crashed a massive 10% as the markets opened for business on Monday.
What Happened: The company last week posted its Q4FY23 results that left many disappointed. The company’s revenue from operations stood at ₹37,441 crore down 2.29% sequentially but around a 16% increase year-over-year.
The IT services giant’s net profits stood at ₹6,128 crore, down around 7% quarter-over-quarter and lower than consensus estimates of around ₹6,500 crore. The company’s EBIT margin stood at 21% down from last quarter’s number of 21.5%.
The results have garnered strong reactions from brokerages across the board. Several global analyst firms including Nomura, JP Morgan, Credit Suisse, and CLSA downgraded their ratings for the stock and cut the target price.
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Nomura downgraded the stock to ‘neutral’ from buy revising the price target to ₹1,290 from ₹1,660. Credit Suisse also downgraded to the ‘neutral’ rating from ‘buy’ cutting the price target to ₹1,240 from ₹1,760.
JP Morgan downgraded the stock from ‘neutral’ to ‘underweight’ slashing the target price to ₹1,200 from ₹1,500. Global brokerage firm CLSA now has an ‘outperform’ rating for the stock downgraded from the earlier ‘buy’ call, slashing the target price to ₹1,550 from ₹1,800.
However, in comparison domestic brokerages have remained largely optimistic about the stock. ICICI Direct and Kotak Institutional Equities maintained the ‘buy’ rating for the stock after the results.
The following events have taken a toll on Infosys’s share price today which had already been reeling at the bourses after its fellow IT services company TCS‘s Q4 results were a miss.
Price Action: Infosys share price slumped 10% to hit lower circuit at ₹1,249.75 at market open on Monday.
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