Stating that the risk-reward ratio is favourable with a limited downside in the IT space, brokerage firm ICICI Securities maintained its 'Buy' rating on Infosys with a target price of Rs 1,641, an upside potential of 27% from the current market price of Rs 1,292. "We believe the risk-reward ratio is favourable with a limited downside (8-9%) for Infosys from current levels in a bear case scenario of 8-9% YoY revenue growth in FY25E and FY26E. Infosys is trading at an attractive valuation of 19.6x 1-year forward P/E closer to its last 15-year average multiple of 19x. We believe Infy’s FY24 revenue guidance of 4-7% YoY is healthy because a CQGR of 2.3-2.9% implied by the mid to high end of the guidance is higher than INFY’s pre-covid CQGR of 2.2%. It is also higher than the CQGR implied by the guidance of larger peers like Accenture, Capgemini, and TCS .

Source: Economic Times June 13, 2023 09:42 UTC