Infosys, one of India’s leading IT services companies, is currently in the spotlight as it prepares to announce its second-quarter results on October 17, 2024. The latest updates indicate a mixed performance in the stock market, with analysts predicting a modest rise in revenue and profit for the quarter.
Main Points
As of October 16, 2024, Infosys shares were trading at ₹1,920.10, down by 2.01% from the previous close of ₹1,959.30. Over the past week, the stock has seen a decline of 1.67%, and over the last month, it has dropped by 1.55%. Despite these short-term fluctuations, Infosys has shown a strong performance over the longer term, with a 33.88% increase over the past year and an impressive 148.89% rise over five years.
Expected Financial Performance
Analysts are optimistic about Infosys’s upcoming financial results. They expect a 5% increase in net sales year-on-year and an 11% rise in profit after tax (PAT) for the second quarter. The company’s guidance for FY25 may also be revised upwards to reflect a growth rate of 4-5% in constant currency terms.
This positive outlook is attributed to several factors:
- Increased demand in the financial services sector.
- Ramp-up of mega-deals.
- Anticipated improvements in revenue from ongoing projects.
Despite recent volatility in the Indian stock market due to geopolitical tensions and foreign institutional investor (FII) outflows, analysts remain hopeful about Infosys’s future performance. The market capitalization of Infosys is currently around ₹796,401 crore, making it one of the most valuable companies in India.Different brokerages have set varying price targets for Infosys shares:
- Prabhudas Lilladher has a target price of ₹1,680.
- Other analysts suggest that if positive trends continue, shares could potentially rebound to higher levels soon.
Investors should keep an eye on several key levels:
- Immediate support level: ₹1,910
- Resistance level: ₹1,950
A sustained move above these levels could signal further upside potential for the stock.
Recent Developments
In addition to its financial performance, Infosys has been expanding its collaborations with major partners like Microsoft and Old National Bank. These partnerships aim to enhance operational efficiency and drive technological transformation within client organizations. Such strategic alliances are expected to contribute positively to Infosys’s revenue streams.
Broader Market Context
The Indian IT sector has been experiencing fluctuations due to broader market conditions. Recently, major indices like Sensex and Nifty have faced declines due to heavy selling pressure in sectors such as auto and banking. However, IT stocks have shown resilience amid these challenges, with some companies witnessing gains following positive earnings reports from peers like Accenture
