Infosys shares hit 52-week high, up 32% in 3 months; more upside ahead?

Shares of IT major Infosys hit their 52 week high on Wednesday. With the current leg of rally, the stock has gained 32% in the last three months. However, the IT stock has delivered nominal returns of 13% in three years and risen 37% in a year.

Infosys shares rose 2% to a high of Rs 1936.90 today against the previous close of Rs 1900.15 on BSE. Market cap of the firm stood at Rs 8.03 lakh crore .

Total 1.43 lakh shares of the firm changed hands amounting to a turnover of Rs 27.49 crore on Wednesday.

The stock saw very low volatility with a beta of 0.7 in the last one year.

In terms of technicals, the relative strength index (RSI) of the Infosys stock stands at 68.1, signaling it's trading neither in the overbought nor in the oversold zone. Infosys shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Brokerage PhillipCapital  has a price target of Rs 2140 on the IT stock.

The brokerage expects Infosys' valuation gap with TCS to narrow going ahead, and has cited levers for Infosys including pricing, nearshoring, automation, subcontracting, and optimising third-party costs.

Nuvama said the management sounded upbeat, anticipating a recovery in US-BFS and a stronger H1 than H2. It has raised its FY25E/26E EPS estimates by about 2 per cent each.

"We are introducing FY27 estimates and rolling forward the valuation to 25 times Sep-26E PE, yielding an increased target price of Rs 2,050 (earlier Rs 1,720); reiterate ‘BUY’," it said.

Another brokerage Nirmal Bang has maintained an ‘Accumulate’ rating. However, the brokerage increased its share price target to Rs 1,985, valuing the stock on June 2026E EPS with a multiple of 24.3 times. "We have maintained the 10 per cent discount to the target PE multiple accorded to TCS," it said.

Infosys reported a 7.1 per cent year-on-year (YoY) increase in net profit at Rs 6,368 crore for the June 2024 quarter compared with Rs 5,945 crore in the corresponding quarter last year. Revenue for the quarter grew 3.6 per cent YoY at Rs 39,315 crore against Rs 37,933 crore in the corresponding quarter of last year.