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KRChoksey recommends to buy Infy, target of 
1824
By siliconindia
|
Tuesday, 14 July 2009, 19:00 IST |
1 Comments
Bangalore: After the quarterly results of Infosys beat the market expectations, KRChoksey has recommended a buy rating on the IT bellwether with a price target of 
1824. According to KRChoksey, by factoring the recent out-performance, proven execution abilities and better cost management abilities and strong cash flow in challenging times makes Infosys the most favored player in the IT industry, hence they recommended a buy on the stock. With the recommended target price, if the stock is bought at Monday's closing price of 1767.95, the percentage of gain would be 3.17 percent.
Infosys beat market expectations to post a 17.3 percent rise in first quarter net profit to 1,527 crore. This was mainly aided by operating margin improvements of 367 basis points (bps) to 34.1 percent. Moreover, the retention of certain key clients boosted repeat business to 98.7 percent from 95.9 percent sequentially. The 52 week stock price chart of Infosys is on the left.
KRChoksey expects Infy's pricing to decline by 5-10 percent across all customers, partially offset by volume increases in the second half of financial year 2010. However, KRChoksey feels that Infosys has a history of guiding mainly based on assumptions of visible revenue from existing multiyear contracts. Therefore additional client wins and favorable currency fluctuations typically result in outperformance.
1824. According to KRChoksey, by factoring the recent out-performance, proven execution abilities and better cost management abilities and strong cash flow in challenging times makes Infosys the most favored player in the IT industry, hence they recommended a buy on the stock. With the recommended target price, if the stock is bought at Monday's closing price of 1767.95, the percentage of gain would be 3.17 percent.
Infosys beat market expectations to post a 17.3 percent rise in first quarter net profit to 1,527 crore. This was mainly aided by operating margin improvements of 367 basis points (bps) to 34.1 percent. Moreover, the retention of certain key clients boosted repeat business to 98.7 percent from 95.9 percent sequentially. The 52 week stock price chart of Infosys is on the left.
KRChoksey expects Infy's pricing to decline by 5-10 percent across all customers, partially offset by volume increases in the second half of financial year 2010. However, KRChoksey feels that Infosys has a history of guiding mainly based on assumptions of visible revenue from existing multiyear contracts. Therefore additional client wins and favorable currency fluctuations typically result in outperformance.