Infosys shares: Price targets for IT stock ahead of Q4 results, dividend announcement

Ahead of its quarterly results at 3.45 pm today, shares of Infosys were trading 2 per cent lower amid concerns over low visibility on order book, as seen in the TCS management commentary, a day ago. The average target of Rs 1,720 on the stock, as per Trendlyne, suggests a 23 per cent upside potential on the counter.

Data showed Infosys shares traded at 20 times 1-year forward PE multiple, a 3 per cent discount to Nifty IT index. In the last 16 years, the Infosys stock has traded at 5 per cent premium to Nifty IT index.

In its earnings preview, ICICI Securities suggested a price target of Rs 1,759 on the stock. HDFC Institutional Equities has a target price of Rs 1,830 on the stock. Infosys is Sharekhan's top IT pick in the large cap pecking order. Motilal Oswal finds the stock worth Rs 1,750 while Elara Securities sees the stock at Rs 1,740.

The stock is down 9 per cent in 2023 so far against a 2 per cent fall in the BSE Sensex.

HDFC Institutional Equities expects the IT giant to clock 14.9 per cent YoY jump in net profit at Rs 6,533 crore on a 20.6 per cent YoY surge in revenues at Rs 38,930 crore. It sees Ebit margin at 21.8 per cent, up nearly 30 basis points on both sequential and YoY basis. Emkay Global offered similar estimates.

This brokerage sees profit figure at Rs 6,530 crore. It sees revenue growing 19.8 per cent YoY at Rs 38,680 crore. Ebit margin is seen at 24.60 per cent, up 25 basis points.

After record large deal wins of $3.3 billion in December quarter, Nirmal Bang Institutional Equities believes that March quarter deal wins will be flattish to possibly marginally lower on QoQ basis, analysts said.

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