Shares of IT giants Infosys and TCS which have remained under pressure over the last year jumped up sharply on Friday. The surge comes as the street is cheering the December quarter results of the companies. Infosys shares surged up over 8% to hit an intraday high of ₹1,615.60.
The Investment: Investing ₹10,000 in Infosys today, with the current market price at around ₹1,600, would get you around 6 shares of the company. Now if the Infosys share price surges back to its all-time high of ₹1,953.90 your ₹10,000 investment today would be worth around ₹12,000.
Earnings Review: Infosys saw a 7.3% YoY decline in net profit, totalling ₹6,106 crore during the October-December period. The IT giant’s consolidated revenue increased by 1.3% YoY to ₹38,821 crore, surpassing consensus estimates. The EBIT margin declined to 20.5%, impacted by salary hikes and other factors. Infosys also revised its revenue growth guidance for the full year to 1.5-2%.
Here is how analysts reacted to the company’s December quarter results:
| Analyst Firm | Rating | Price Target |
|---|---|---|
| Jefferies | Buy | ₹1,740 |
| Incred | Add | ₹1,668 |
| Kotak Securities | Buy | ₹1,800 |
| Motilal Oswal | Buy | ₹1,750 |
| IDBI Capital | Buy | ₹1,730 |
Price Action: Infosys’ share price was up 7.11% to ₹1,600.50 on Friday morning
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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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