Infosys' shares experienced a downturn on Friday, despite the company posting Q2 results that exceeded expectations. The stock has been in a bit of a lull this year along with other IT stocks. Even its peer TCS failed to impress investors and analysts with its results released earlier in the week. But, the IT peers have treated investors to incredible returns over the years.
The Investment: If your dad invested ₹10,000 in Infosys on October 14, 2013, when the stock was trading at ₹321.72 per share. That investment would have bought you approximately 31 shares of Infosys. Fast forward to October 13, 2023, and those same shares are now worth around ₹1,400 each. That ₹10,000 investment a decade ago would now be valued at ₹43,000.
Earnings Overview: The IT giant reported a 3% year-on-year increase in consolidated net profit, reaching ₹6,212 crore, and revenue from operations totalling ₹38,994 crore, outperforming street projections. However, a revised revenue growth expectation for FY2024 has cast a shadow over the positive earnings report, leading to a decline in the stock’s value.
Here is how top analysts reacted to the IT behemoth’s results.
|Analyst Firm||Rating||Target Price|
The mixed reactions from analysts stem from Infosys’ revised revenue growth expectations for FY2024, now anticipated to be between 1% and 2.5%, a reduction from the initial 1-3.5% projection made during the June quarter. Despite this, some analysts remain optimistic due to strong deal wins, providing visibility for robust revenue growth in FY25.
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Price Action: Infosys’ share price was down 2.69% to trade at ₹1,426.10 in the early hours of trading on Friday.
Disclaimer: This article is for informational purposes only and not intended as financial advice.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story. The Infosys share price has been adjusted for dividends/splits and bonuses.
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