Shares of Infosys have fallen 28 per cent from their 52-week high in the last eight months. The stock of the IT firm hit its 52-week high on January 17, 2022 and fell to a 52-week low of Rs 1,367 on June 17, 2022. Infosys stock was trading 2.27 per cent higher from the 52-week low level. The IT sector stock was trading at Rs 1,397 today, up 1.5 per cent against the previous close of Rs 1,379.15. Infosys shares have lost 28.49 per cent from their 52-week high in comparison to the current trading level.
Infosys stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of Infosys rose to Rs 5.88 lakh crore. The stock has gained after three sessions of fall. A total of 31.76 lakh shares of the firm changed hands, amounting to a turnover of Rs 437.59 crore on BSE. The stock has declined 17.16 per cent in a year and lost 25.86 per cent in 2022.
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Shareholding Pattern
In Q1 of the current fiscal, 26.64 lakh public shareholders held a 86.57 per cent stake or 363.29 crore shares in Infosys. 25 promoters held 13.11 per cent stake or 55.16 crore shares in the last quarter. 26.10 lakh public shareholders held 30.53 crore shares of the firm, amounting to a stake of 7.26 per cent with an individual share capital of up to Rs 2 lakh. 1,364 public shareholders held 17.76 crore shares of the firm, amounting to a stake of 4.22 per cent with an individual share capital of over Rs 2 lakh. 36 mutual funds owned 63.04 crore shares or 14.98 per cent stake in the firm at the end of June quarter. 1,410 FPIs owned 31.72 per cent stake or 133.32 crore shares in the IT major at the end of the last quarter.
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Q1 earnings
The IT services firm reported a lower-than-estimated 3.2 per cent rise in June quarter net profit as operating margin declined on rising expenses. Net profit came at Rs 5,360 crore, or Rs 12.78 a share, compared with Rs 5,195 crore, or Rs 12.24 per share, in the same period a year ago.
Sequentially, profit fell 5.7 per cent from Rs 5,686 crore in the January-March quarter. Revenue or turnover rose 23.6 per cent to Rs 34,470 crore in Q1.
Infosys raised its full-year FY23 (April 2022 to March 2023) revenue guidance to 14-16 per cent against 13-15 per cent it had projected earlier, backed by Q1 growth, and a strong demand outlook.
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Operating margin declined to 20.1 per cent in the first quarter of the current 2022-23 fiscal compared with a 23.7 per cent margin in April-June 2021 and 21.5 per cent in January-March. Operating expenses climbed 14.4 per cent, most as selling and marketing cost went up.
Experts’ Take
Here’s a look at what analysts said on the outlook of Infosys stock.
Pavitra Shetty, co-founder and trainer, Tips2Trades
“Strong sell off in technology stocks globally has led to a sharp rerating even in the Indian IT sector including Infosys. Rs 1,445 remains a strong support. Infosys needs to close above Rs 1,520 on daily basis to move considerably higher to Rs 1,630- Rs 1,700 in the near term.”
Vinit Bolinjkar, Head of Research, Ventura Securities
“Infosys reported a healthy dollar revenue growth of 5.5% QoQ CC and 21.4% YoY CC at $4,444 mn (1% higher than our estimate of $4,395mn), supported by volume-led growth. The management revised upwards its revenue growth guidance for FY23 to 14-16% from 13-15% earlier, on the back of the strong clientele at hand. It guided for an operating profit margin of 21-23%, which is expected to be in the lower range. Strong momentum continued in deal wins with 19 new deals in Q1 FY23; the highest deal value was $1.69bn. We believe that the company will be able to deliver a decent performance which will lead to the target of Rs 1,627 (24.0X FY24 EPS).”
Santosh Meena, Head of Research, Swastika Investmart
“The counter is in a downward trend and from the last few trading sessions counter is trying to form a base at around Rs 1,400 level. The overall structure is distorted as it trades below its all-important moving averages. However, it is having a demand zone near Rs 1350- Rs 1400. On the upside, Rs 1500 is an immediate susceptible area; above this, we can expect a run-up towards Rs 1,700 levels in the near term.”
Manoj Dalmia, founder and director, Proficient Equities
“Infosys has been under selling pressure for a while. We can expect some selling in the stock with a downside target of Rs 1,396 levels.”
Ravi Singhal, CEO, GCL
“Infosys is trading at multi-quarter lows. After a period of consolidation at lows, this large cap is now poised to move higher. In 3 to 6 months, one can expect a target of Rs 1,600. With the peak of inflation behind us, the rise in interest rates is a price factor. Demand and pricing appear to be under control now.”