This article will help you evaluate is Infosys better for investment. But before I proceed, please note that our analysis is only for educational purposes and not to provide stock tips. This article is to empower you with the right knowledge so that you can make an informed investment decision
Infosys Share Price Target 2022, 2023, 2024, 2025, 2030: Company Profile
Infosys is established by N.R. Narayan Murthy and six engineers in Pune, India, with an initial capital of 250 US dollars.
Infosys Revenue by Geography
Most of the Indians think Infosys is an Indian company, so most of the revenues of Infosys are also from India. But this is wrong, only about 2.9% of the revenues are from India. Most of the revenues are from North America and Europe.
61.3% of the revenues are from North America, 24.2% of the revenues are from Europe, 11.6% of the revenues are from the Rest of the world, and just about 2.9% of the revenues are from India.
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Revenue by Business Segments
- FS – Includes enterprises in financial services and insurance.
- Retail – Includes enterprises in retail, consumer packaged goods and logistics.
- COM – Includes enterprises in communication, telecom OEM and media.
- EURS – Includes enterprises in energy, utilities, resources, and services.
- MFG – Includes enterprise in manufacturing.
- Hi-Tech – Includes enterprises in Hi-Tech.
- LS – Includes enterprises in life sciences and healthcare.
- Others – Includes segments of businesses in India, Japan, China, Infosys public services and other enterprises in public services.
Infosys Subsidiaries
Did you know Infosys has 13 subsidiaries? Infosys has made strategic investments in different domains. The company has established 13 subsidiaries across the globe.
- EdgeVerve systems Limited.
- Infosys BPM Limited.
- Infosys consulting holding AG.
- Infosys consulting Ltda.
- Infosys public services Inc.
- Infosys technologies ( Australia ) Pty. Limited.
- Infosys technologies ( China ) Co. Limited.
- Infosys technologies ( Shanghai ) Co. Limited.
- Infosys technologies ( Sweden ) AB.
- Infosys technologies S.de.R.L. de C.V.
- Panaya.
- Noah consulting LLC.
Infosys Partnerships
The partnership focuses on developing solutions that incorporate the intellectual property of Infosys as well as technology and services from the alliance partners.
Some of the top partners of Infosys are:
- Adobe.
- Google.
- Amazon web services.
- HP.
- Hitachi Vantara.
- Huawei.
- IBM maximo.
- IBM sterling.
- Microsoft.
- IBM
- Newgen
- Nokia.
- Oracle
- Pegasystems.
- Salesforce.
- Red hat.
- MongoDB.
- Infomatica.
- Cisco systems.
Infosys Share Price Target 2022: Target Price Rs.2,300 by ICICI Direct
ICICI Direct has a buy call on Infosys with a target price of Rs.2,300. The time period given by the brokerage when Infosys can reach the given target is one year. The report was released by ICICI direct on Jan 14, 2022.
ICICI Direct take on Infosys Share Price Target 2022
Infosys is one of the leading IT players catering to BFSI, retail, communication, manufacturing & hi-tech verticals. The company generates more than 58% of its revenues are from digital technologies.
Dividend payout of more than 80%, margins more than 20%, and ROCE of more than 31% are key positives.
Infosys reported robust Q3FY22 results in revenue terms. Digital revenues rose 41.2% YoY. It now contributes 58.5% of revenues Margins were improved and stood at 23.5% despite supply-side challenges Revised revenue guidance upwards from 16.5-17.5% earlier to 19.5-20.0% for FY22E and maintained margin guidance at 22-24% for FY22E.
What Should Investors do?
Infosys’s share price has grown by 4.4x over the past five years (from 424 in January 2017 to 1,897 levels in January 2022). ICICI Direct continues to remain positive and retained a buy rating on the stock.
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Key highlights for future growth opportunities
Differentiated digital and cloud capabilities to drive growth, growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and regions Infosys to register industry leading revenue growth (14.9% CAGR in FY21- 24E) Healthy cash generation, robust dividend distribution & buyback.
Infosys has been outperforming TCS in terms of revenues over the past two years and has also narrowed the margin gap. ICICI Direct expects the company to outperform TCS in terms of revenue.
Infosys Share Price Target 2022: Target Price Rs.2,094 by KRChoksey
KRChoksey has a buy call on Infosys with a share price target of Rs.2,094. The time period given by brokerage when Infosys can reach the given target is one year. The report was released by KRChoksey on 14 Jan 2022.
KRChoksey take on Infosys Share Price Target 2022
Infosys Q3FY22 performance was higher than KRChoksey’s estimation. Dollar Revenue was up by 6.3% QoQ and Rupee revenue grew by 7.7% QoQ to INR 318,670Mn (KRChoksey estimation was INR.310,343Mn). The reported operating margin witnessed a de-growth, down by 7bps to 23.5% QoQ.
Revenue acceleration, improving business mix, employee pyramid, right pricing in digital projects, automation, and other operating efficiencies would support margins going ahead. Reported Net profit grew by 7.4% QoQ to INR 58,220mn (KRChoksey estimation was INR 59,670mn) with a margin of 18.3% (marginally down by 4bps on a QoQ basis).
Infosys has raised FY22 revenue growth guidance by 250-300bps to 19.5-20% (earlier 16.5- 17.5%), implying 0.5-2% QoQ growth in Q4. Infosys’ strong broad-based revenue growth in a seasonally soft quarter clearly reflects the confidence clients have in the company’s capabilities, leading to consistent market share gains, and the company’s operating margin guidance remains the same at 22%-24%. KRChoksey maintains a buy rating with a share price target of Rs.2,094.
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Steady Deal Wins
Large deal wins accelerated with 25 deals in 3QFY22 with a total contract value of USD 2.53bn (Large deal bookings were up 18% QoQ, and 43% net new) taking trailing twelve months total contract value to USD 9.3Bn, compared to USD 2.15bn in 2QFY22 and USD 7.12bn in 3QFY21 (included the mega-deal with Daimler). Out of these, 6 were in retail, 5 each in BFSI, Communication and Energy, 2 in Manufacturing, and 1 each in High-tech and Life Sciences. 16 deal wins were from America, 7 were from Europe, and 2 were from the rest of the world. The company has raised its annual revenue guidance from 16.5-17.5% to 19.5%-20%, which is a reflection of strong growth delivery.
Active Customer Base
Key Ratio Analysis
| Key Ratio | FY20 | FY21 | FY22E | FY23E | FY24E |
|---|---|---|---|---|---|
| EBIT Margin (%) | 24.5% | 27.8% | 26.1% | 24.7% | 27.4% |
| Net Profit Margin (%) | 18.3% | 19.3% | 18.7% | 18% | 19.8% |
| ROE (%) | 25.5% | 27.3% | 28.2% | 29.8% | 35.6% |
| ROCE (%) | 22.5% | 25.3% | 26% | 27.3% | 33.2% |
| EPS | 38.9 | 45.5 | 51.9 | 57.4 | 72.2 |
Infosys Share Price Target 2022: Target Price Rs.2,299 by Geojit BNP
Geojit BNP has a buy call on Infosys with a share price target of Rs.2,299. The time period given by the brokerage when Infosys can reach the given target is one year. The report was released by Geojit BNP on Jan 17, 2022.
Geojit BNP take on Infosys Share Price Target 2022
The company has bagged 25 large deals with over 15 million TCV( total contract value) totaling $2.5 billion of TCV. The share of new deals increased in Q3 to 44% within the large deal numbers. Client metrics improved further with 100 million client count increasing to 37, an increase of 8% YoY. In the last quarter of added clients, 111 new clients’ operating parameters remain robust, but utilization was 88.5% slightly lower than the previous quarter due to supply-side pressures.
Key Highlights from Infosys Concall
Infosys advanced Indian Income-tax portal, where more than 5.8cr tax returns were filed during the assessment year 2020-21, and the company is also working for further modules and upgradation.
The company recruited ~12,450 employees in the quarter, the highest recruitment rate ever. The balance sheet continued to be strong and debt-free. The company was able to maintain strong consolidated cash and investments of Rs. 4.28 billion even after paying over 850 million of interim dividend during the quarter. The management upgraded its annual revenue growth guidance from 16.5% to 17.5% moving up from 19.5% to 20%.
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Valuation
Infosys is expected to fare better on the back of the digital transformation wave with the influx of 5G network which will drive multisegmental growth in the upcoming years. Geojit expects earnings to grow at a healthy 16% CAGR over FY21 24E. Geojit retains a buy rating on the stock with a revised target price of Rs. 2,299.
Infosys Share Price Target 2022: Target Price Rs.2,124 by Arihant Capital
Arihant capital has a buy call on Infosys with a share price target of Rs.2,124. The time period given by the brokerage when Infosys can reach the given target is one year. The report was released by Arihant capital on Jan 13, 2022.
Arihant Capital take on Infosys Share Price Target 2022
Infosys has reported robust Q3FY22 numbers, above Arihant Capital estimations on the revenue front, and raised growth guidance for FY22. Infosys has reported consolidated revenue of INR 31,867 Cr, +22.9% YoY/7.7% QoQ in Q3FY22 against our estimate of INR 30,958 cr.
Consolidated EBIT stood at INR 7,484 Cr, up by 13.6% YoY/7.3% QoQ against Arihant capital estimation of INR 7,614 Cr. On the margins front, EBIT margin contracted by 193 bps YoY/ 7bps QoQ to 23.5% against Arihant capital estimation of 24.6%.
Consolidated PAT stood at INR 5,809 Cr, up by 11.8% YoY/7.2% QoQ against Arihant capital estimation of INR 5,935 Cr. TCV(total contract value) of $2.53 Bn in Q3 against $2.15 Bn in Q2FY22. Raised revenue growth guidance to 19.5%-20.0%. (Arihant capitalExpected 17.5 – 18.5%)
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Key Highlights
The company is seeing improvement in sub-segment and geography and continues to focus on smart manufacturing, IoT, digital supply chain, and connected products.
Business Segment
Hi-tech Grew by 18.9% in CC terms and the company continues seeing the engagement of the client. Life Sciences Performance improves further 29.2% growth in CC terms as adoption of the digital health daily health and patient access and this lead to a significant uptick in the cloud.
Digital Services
The company has very strong performance in India Income tax program in India over 58mn tax return file using the new system by the deadline of Dec 31 FY21 and last day it was 4.6mn tax return file. In digital services company is a leader in 12 digital-related capabilities from artificial intelligence, automation, cloud services IOT, engineering, modernization, big data, and analytics. The company has strong performance in all of the areas relevant for the client and deep strategy for the client.
Geography
North America grew by 21.4% on YoY in cc terms, Europe up by 27.2% in cc terms. Segment: Retail, communication, and manufacturing grew by 19.8%.
Deal Wins
The company won 25 large deals with TCV of $2.53 and 6 deals in retail, 5 in communication, financial service retail and Energy, Utilities, resources and Services, 2 in Manufacturing, and 1 in hi-tech and life science.
Infosys Share Price Target 2023
Infosys has a systematic M&A approach aimed to strengthen digital services capabilities, deepen industry expertise, and expand its geographical footprint. Focused on executing Infosys’ Agile Digital strategy, during the year, the Company completed three acquisitions:
GuideVision, s.r.o. a leading ServiceNow Elite Partner in Europe augmenting Infosys CobaltTM portfolio of cloud services and strengthening nearshore delivery presence on October 1, 2020
Kaleidoscope Animations, Inc., a US-based product design and development firm strengthening its presence in Medical devices, Consumer, and Industrial markets on October 9, 2020
Beringer Commerce Inc. and Beringer Capital Digital Group Inc., collectively known as Blue Acorn iCi, an award-winning, Adobe Platinum partner in the US, and a leader in digital customer experience, commerce, and analytics on October 27, 2020
Infosys is continuously strengthening its business with major acquisitions and focusing on future technologies like cloud, AI, and digital. Infosys’ share price target for 2023 is Rs 2,550.
Infosys Share Price Target 2024
Infosys shares have given a return of 7.4% in the last 6 months, 39.4% in the last 1 year, and grown at a CAGR of 32% over the last 3 years. IT companies have huge opportunities in the future as almost every company is moving towards digital and the support from the government for digital India and all government companies are moving towards digital, this will be a big opportunity for IT companies. Infosys’ share price target 2024 is Rs 3,000.
Infosys Share Price Target 2025
Software and computing technology are transforming businesses in every industry around the world in a profound and fundamental way. Companies are rapidly adopting digital technologies to reimagine their cost structures, increase business resilience and agility, personalize experiences for their customers and employees, and launch new and disruptive products and services.
While these developments present strong market opportunities for the IT industry, there is also an imperative need for IT services and solutions companies to transition from fast-commoditizing traditional service offerings, to attract and retain quality talent globally, to reimagine cost structures, and leverage automation for increased productivity. Infosys share price target for 2025 is Rs 3,500.
Infosys Share Price Target 2030
The future is all about the cloud, enterprises are moving towards the cloud, over the past decade. Even as the cloud grows in strategic relevance for companies, capturing the full extent of its promised value remains a struggle for many businesses.
The capability to do all this and more comes to Infosys from Infosys CobaltTM – a powerful set of services, solutions, and platforms for enterprises to accelerate their cloud journey.
Infosys already supported Daimler AG to transform to hybrid cloud infrastructure to shape new experiences, Vanguard to advanced digital transformation with secure cloud adoption, helped Reckiit to intelligence on the cloud to power next-generation outcomes and deliver data to drive in-depth support for cloud solutions for Microsoft. Considering the huge opportunities for IT companies in digital, cloud, AI, and machine-learning segments, Infosys share price target for 2030 is Rs 5,800.
Frequently Asked Questions
What is Infosys target price?
ICICI Direct has given Infosys a target price of Rs.2,300, KRChoksey has given a target price of Rs.2,094, Geojit has given a share price target of Rs.2,299, and Arihant capital has given a share price target of Rs.2,124.
Is Infosys good for long term?
Yes, Infosys is good for the long term. In fact, Infosys is the second-largest IT company in India. The company is very strong in terms of financials and fundamentals.
Is TCS better than Infosys?
In terms of size, employees, market cap, profits, revenue, and in most of the categories TCS is better than Infosys. TCS is the biggest IT company in India and in the top 3 worldwide.
Is Infosys a good stock to buy?
Yes, Infosys is a good stock to buy, it is one of the biggest IT company in India, as well as in the World.
