Infosys (NS:INFY)' market capitalization fell over 4% on Friday, following a second-quarter guidance cut, causing the IT firm to slip below Hindustan Unilever (LON:ULVR) Ltd (HUL) in the market cap ranking. The company's stock dipped to ₹1,402.10 on BSE, while HUL managed to maintain a higher market cap despite experiencing a slight drop.
Several brokerage firms have revised their growth estimates for Infosys, focusing on profit after tax (PAT) growth and dollar revenue compound annual growth rate (CAGR) for FY24-26F. InCred Equities has assigned a 'Hold' rating due to limited visibility of recovery, whereas IIFL Securities holds a 'Buy' rating, projecting FY25 recovery backed by Infosys' order book and a 4% dividend yield.
Equirus maintains a 'Long' rating for Infosys with a target of ₹1,610 (USD1 = INR83.226) by December 2024. This projection takes into account the underperformance in Infosys's 2023 share price and an anticipated industry demand turnaround. However, IIFL Securities anticipates that Infosys' discount to Tata Consultancy Services (NS:TCS) will remain high.
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