Shares of Infosys on Monday hit an all-time high, as most of the brokerages increased the price target on the stock. The IT giant on Friday proved estimates wrong by announcing 3.81% quarter-on-quarter (qoq) rise in its consolidated net profit figures. There was not much action this weekend because Indian markets were shut on Friday.
Brokerages including Jefferies, Prabhudas Lilladher, Edelwiess Securities, Religare Securities, IDFC Securities, Kotak Securities, PhillipCapital and IDBI Capital have increased the price target on the stock. Of the analysts covering the stock, 49 have a ‘buy’ rating, seven have a ‘hold’ rating, while three have a ‘sell’ rating.
Infosys reported a better-than-expected 1.6% rise in fourth quarter dollar revenue and expects dollar revenue to grow between 11.8% and 13.8% in the current financial year, even as the company ends the financial year with industry-leading growth of 9.1%.
The stock touched a high of Rs.1,267.90 apiece and rose as much as 8.2%, the maximum gain in nine months. So far this year, the stock gained 13.8%.
Pegged at Rs 3,597-crore profit for the quarter March 2016, Infosys’ revenue grew 4.07% qoq and 23.40% year-on-year (yoy) to Rs 16,550 crore. The earnings per share (EPS) in the March quarter is Rs 15.74 against Rs 13.55 in the March ’15 quarter.
The IT major declared a final dividend of Rs 14.25 per share, which translates to a final dividend of $0.22 per share (at USD-INR rate of 66.26). Infosys has announced the revenue guidance 11.5-13.5% in constant currency term in FY17. In the past one year, Infosys’ share price advanced 4.69% to Rs 1,172 on April 13, whereas BSE Sensex fell 11.77%.
UB Pravin Rao, COO of Infosys said, “Employee attrition reduced further in Q4, and is reflective of increased engagement with our people all through the year, and our steps to make Infosys an exciting place for the world’s best talent.”