Infosys shares rise over 1% ahead of Q4 results. Here’s what analysts say


Shares of Infosys, a major IT services company, went up on Wednesday, one day before the company is set to release its financial results for the March quarter (Q4FY23) on Thursday, April 13.

At 1:44 p.m., the script was worth 1.33 percent more per share, at 1,424.90. In the past week, Infosys has given investors a 0.81 percent return on their money. On April 13, 2022, the stock hit a 52-week high of 1759.45, and on September 26, 2022, it hit a 52-week low of 1355.

Ahead of its fourth-quarter earnings report, the average price target for Infosys shares is 1,720.36, according to data from Trendlyne that is available to the public. This means that the stock could go up by 20.84 percent.

Earnings preview
For the quarter that ended on March 31, 2023, Infosys is expected to report a 15% increase in net profit year-over-year and a 20% increase in net sales. Ebit margin is likely to grow a little bit for the IT giant, but only a little. Deal wins are likely to stay about the same from one quarter to the next.

Brokerages generally expect Infosys to give guidance for constant currency (CC) revenue growth of 5–8% and 21–23% Ebit margin for FY24. All eyes would be on big deals and updates on conversations with clients.

Four of the six brokerage firms think that the company’s profit will go down from one quarter to the next (QoQ). Profits are expected to drop by 3.1% each quarter for Kotak Institutional Equities, 1.4% for Sharekhan, 0.8% for HDFC, and 0.1% for Jefferies.

Earlier, JP Morgan said that it thinks there are downside risks to Infosys Ltd’s growth and demand commentary for the financial year 2023-2024. The global brokerage said that both TCS and Infosys have the most exposure to regional banks in the US that are in financial trouble.

India’s IT industry is facing tough macroeconomic conditions in its most important markets, like Europe and the US, where spending on technology is going down and long-term deals are taking longer to be decided on.