Infosys share price hit a lower circuit on Monday, tanking 10% to Rs 1,250.30 on NSE after the IT giant’s Q4 results missed market estimates. Infosys reported its fourth quarter revenue of Rs 37,441 crore, down 2.3% from Rs 38,318 crore in the previous quarter, with a net profit of Rs 6,128 crore. According to analysts and brokerage firms, the IT firm was expected to clock a profit rise in the range of 14.2- 21.7 per cent on-year during the March quarter.
On Monday, domestic indices NSE Nifty and BSE Sensex opened with sharp cuts. The Nifty 50 fell 197.50 pts or 1.11% to 17,630.50 and BSE Sensex tanked 744.73 pts or 1.23% to 59,686.27. In sectoral indices, Bank Nifty was down 39.70 pts or 0.09% to 42,092.85, Nifty IT tanked 1,702.85 pts or 6.01% to 26,639.95. All the constituents on the IT index were trading in the red. The top losers were Infosys, Persistent Systems, LTIM, LTTS and Coforge.
Philip Capital: Buy – Target Price – Rs 1590
“Given the uncertain environment in the near term, growth can be back-ended for Infosys, in our view. We believe the stock can remain under pressure in the near term until clarity emerges on growth. Post initial reaction, we believe the risk-reward will become favourable given Infosys has underperformed Nifty IT by 7% in the last three months and valuations are below its five-year median 1-year forward PE (22x). Maintain BUY,” said analysts at Philip Capital.