Infosys share touched an all-time high today as market capitalisation of the IT firm hit the $100 billion mark.The stock hit record high of Rs 1,755.6 today.
Infosys is the fourth Indian firm to cross the $100 billion market cap mark . The other three companies are Tata Consultancy Services (TCS), Reliance Industries Limited and HDFC Bank.
The Bengaluru-based IT major is second only to TCS in the IT industry to cross the $100 billion (Rs 7,43,657.67 crore) market cap mark. Currently, TCS has a market cap of Rs 13,46,158.78 crore.
On August 17, market cap of TCS crossed Rs 13 lakh crore mark for first time after the IT share hit a record high. Market cap of the firm rose to Rs 13.14 lakh crore on BSE.
Meanwhile, Infosys share has gained 38.47% in one year and risen 83.59% since the beginning of this year.
Total 0.74 lakh shares of the firm changed hands amounting to turnover of Rs 12.96 crore.
The share fell to its 52-week low of Rs 912.60 on September 1, 2020.
Infosys share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Infosys shares have rallied 11.35% after the announcement of Q1 earnings.
Infosys reported its June quarter earnings on July 14.
The stock closed at Rs 1,576 before the earnings were announced. On August 3, 2021, it became the fourth Indian firm to reach Rs 7 lakh crore mark in market capitalisation after its stock surged to lifetime high.
Infosys reported a nearly 23 per cent rise in net profit for the June quarter. Net profit in last quarter stood at Rs 5,195 crore against Rs 4,233 crore in the year-ago period.
Infosys raised its revenue guidance for FY22 to 14-16 per cent from the previous outlook of 12-14 per cent. The firm said its confidence stemmed from strong Q1 growth, good order wins and robust deal pipeline which boosted its share.
Post Q1 show, brokerages also became positive on prospects of the stock.
Motilal Oswal reiterated its buy rating on the stock.
“We expect Infosys to deliver another year of an ongoing guidance raise as the current one does not fully factor in strong technology demand and execution of its record high deal wins. We have cut our FY22E/FY23E EPS estimate by 3.2%/1.6% to encompass margin pressure due to ongoing supply crunch in the industry and expected increase in travel expenses.
We continue to view Infosys as a key beneficiary of a recovery in IT spends in FY22, given its capabilities around Cloud and Digital transformation. We value Infosys at 27x FY23E earnings per share and reiterate our buy rating.”
Jyoti Roy – DVP- Equity Strategist, Angel Broking said, “Post the Q1FY22 results the management has also increased their revenue growth guidance to 14-16% in constant currency terms while margin guidance has been retained at 22-24% for FY2022.
At current levels Infosys is trading at P/E multiple of 25xFY23 EPS estimate of Rs. 63.0 which is at a discount to some of the mid cap IT stocks. We expect Infosys to register strong revenue/PAT growth of 18.1%/17.5% over FY2021-FY2023 and maintain our positive view on the stock.”
