Infosys Shares Soar To New All-Time High As Q1 Print Impresses Brokerages, Investors

Infosys‘ share price shot up sharply on Friday morning as the company’s strong results impressed the street. The stock went up over 4% to hit a new all-time high of ₹1,844.

What Happened: The IT services giant reported a net profit of ₹6,368 crore for the quarter, reflecting a 7% increase from the ₹5,945 crore achieved in the same period last year. Revenue from operations also rose by 7%, reaching ₹39,315 crore compared to ₹37,933 crore in the previous year. These results exceeded analysts’ expectations, who had projected revenue of ₹38,875 crore and a net profit of ₹6,210 crore.

The company has revised its guidance for FY25, now expecting revenue growth of 3%-4% in constant currency, an upgrade from the previous 1%-3% range. Additionally, the company anticipates an operating margin of 20%-22%.

Brokerage Reactions: Most brokerages were upbeat on the IT giant after the results came out. Bernstein maintained its “outperform” rating, increasing the target price to ₹2,100 from ₹1,650. The analysts highlighted that Infosys delivered its strongest beat in 10 quarters across revenue, margins and earnings per share. Deal momentum was robust with $4.1 billion (around ₹34,000 crore) in total contract value and around 57% net new deals.

Nomura maintains a “buy” rating with a price target of ₹1,950, noting that Q1FY25 was an all-around beat. The analysts said that they were surprised by the revenue guidance, driven by a strong start, deal wins, and acquisition integration. Nomura raised its FY25-26 EPS estimates by nearly 2%-3%, reiterating Infosys as a top pick.

See Also: LIC, FIIs Raise Stake In RVNL In June Quarter

Jefferies also maintained a “buy” rating, hiking the target price to ₹2,040 from ₹1,630. The research firm noted that the June quarter results beating estimates were driven by strong revenue growth of 3.6% QoQ. The company has raised its FY25 growth guidance, which Jefferies finds conservative given the strong deal. The analysts see initial signs of recovery in BFSI and believe that strong deal wins suggest the worst is behind Infosys.

Motilal Oswal maintained its “buy” rating for the stock with a price target of ₹2,000. The domestic brokerage firm noted that the FY25 revenue growth guidance upgrade for Infosys was largely driven by a one-time spike in the India business and inorganic impacts. However, the analysts believe that strong deal wins should enhance Infosys’s medium-term growth outlook.

Kotak Securities also maintained its “buy” rating for the stock, with a revised target price of ₹2,050, up from the ₹1,750 earlier. The analysts said that they believe Infosys has the elements to deliver industry-leading revenue growth once the demand environment improves.

HDFC Securities maintained its “add” rating for the stock but raised the price target to ₹1,900 from ₹1,610. The brokerage house noted that Infosys delivered a positive surprise in Q1, primarily due to a revival in the banking, financial services and insurance vertical and improved deal conversion to revenue, similar to TCS.

Citi maintained a “neutral” rating on Infosys, raising the target price to ₹1,850 from ₹1,550. The analysts noted that margins were slightly ahead due to a one-off event. The guidance was revised to 3%-4%, partly driven by acquisitions. Despite better growth, strong TCV momentum, and improved free cash flow trends, Citi views near-term upsides as limited given the sharp 25% increase in the stock over the past 45 days.

Price Action: Infosys’ share price was up 3.57% to trade at ₹1,820.90 as the markets opened on Friday.

Read Next: Tata Tech Q1 Net Profit Falls 15% To ₹162.03 Cr

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.