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Infosys has surged 7% to Rs 3,908, also its record high in noon deals on National Stock Exchange (NSE), after the company reported a better-than-expected consolidated net profit at Rs 3,096 crore for the second quarter ended September 30, 2014 (Q2).
The company had registered a profit of Rs 2,886 crore in the previous quarter ended June 2014.
Total consolidated revenues, grew 4.5% to Rs 13,342 crore in the September quarter, as against Rs 12,770 crore in the June quarter, Infosys said in a statement.
Analysts, on an average, had expected profit of Rs 3,033 crore on revenues of Rs 13,315 crore for the quarter.
The board also recommended a bonus issue of one equity share for every equity share held and declared interim dividend of Rs 30 per equity share.
Meanwhile, analyst at Angel Broking maintains buy rating on the stock with a target price of Rs 4,700.
"Going forward, the company has maintained its future USD revenue growth guidance for FY2015 at 7-9% and EBIT margins to be sustained at these levels in a narrow band. On valuation front, the stock is cheap at current valuations of 15.5xFY2016E earnings, at a 30% discount to its peer like TCS, which we believe can narrow down once the growth pick-ups. Thus, we maintain our buy rating on the stock with a target price of Rs 4,700,” said Ms. Sarabjit Kour Nangra on Infosys result review.
“Though the guidance is lower than industry, this is something which was already known as the company is in restructuring mode. We expect the growth rate to be relatively better going ahead. We will be looking forward to their strategic vision for the company,” according to Dipen Shah, senior vice president and head of private client group research, Kotak Securities.
The stock is set to report its highest single day gain in past 15 months. Earlier, on July 12, 2013, shares of Infosys surged 11% after the company left FY14 sales growth guidance in dollar terms unchanged.
The company had registered a profit of Rs 2,886 crore in the previous quarter ended June 2014.
Total consolidated revenues, grew 4.5% to Rs 13,342 crore in the September quarter, as against Rs 12,770 crore in the June quarter, Infosys said in a statement.
Analysts, on an average, had expected profit of Rs 3,033 crore on revenues of Rs 13,315 crore for the quarter.
The board also recommended a bonus issue of one equity share for every equity share held and declared interim dividend of Rs 30 per equity share.
Meanwhile, analyst at Angel Broking maintains buy rating on the stock with a target price of Rs 4,700.
"Going forward, the company has maintained its future USD revenue growth guidance for FY2015 at 7-9% and EBIT margins to be sustained at these levels in a narrow band. On valuation front, the stock is cheap at current valuations of 15.5xFY2016E earnings, at a 30% discount to its peer like TCS, which we believe can narrow down once the growth pick-ups. Thus, we maintain our buy rating on the stock with a target price of Rs 4,700,” said Ms. Sarabjit Kour Nangra on Infosys result review.
“Though the guidance is lower than industry, this is something which was already known as the company is in restructuring mode. We expect the growth rate to be relatively better going ahead. We will be looking forward to their strategic vision for the company,” according to Dipen Shah, senior vice president and head of private client group research, Kotak Securities.
The stock is set to report its highest single day gain in past 15 months. Earlier, on July 12, 2013, shares of Infosys surged 11% after the company left FY14 sales growth guidance in dollar terms unchanged.
