Mumbai: Hitting a fresh record high on Tuesday, Infosys Ltd shares cross $100 billion in market capitalisation – the fourth Indian company to have achieved milestone.
Shares hit a new record high of Rs1,755.60 apiece on the BSE, pushing the market cap to Rs7.44 trillion, or $100 billion. At 0925am, the scrip was at Rs1,752.45, up 0.% from its previous close.
Consultancy Services Ltd at $115 billion, and HDFC Bank at $100.1 billion.
Over the past few years, Infosys has among the fastest growing companies in India, having witnessed broad-based traction in cloud, customer experience, cyber security, among others, analysts say.
The company has winning market share and investments in customer experience and cyber security have helped it increase the total addressable market and target a bigger chunk of a client’s IT budget. The endeavour is to increase pricing in new age technologies and take client specific hikes in areas where Infosys has much better negotiation power during the next 12-24 months, analysts added.
The stock has been on an upswing after the company management raised revenue growth to 14-16% for fiscal 2022 in constant currency terms from 12-14%. It has maintained its operating margins guidance at 22-24%.
Revenue in the June quarter rose 18% year-on-year to Rs27,896 crore, aided by strong growth across segments. EBITDA grew 21.4% year-on-year due to increase in revenue and decline in employee expense. EBITDA margin expanded 70bps to 26.6%. Net profit was at Rs5,195 crore, up 22.7% from a year ago.
“Infosys is witnessing strong demand from clients across segments as clients are looking to aggressively invest in IT to cut their cost in legacy operation and redirect those savings in new areas of growth. Despite supply-side pressure, Infosys is targeting to deliver margins in a similar range like FY21 (if we exclude one-time cost benefit impact from FY21) as it benefits from higher offshoring and automation,” said Edelweiss Research in a note to its investors.
“We believe Infosys, given its strong presence in cloud and digital transformation, will remain a major beneficiary of this tech-upcycle which is going to last for three-four years. The stock trades at 28.7xFY22E”, Edelweiss report added. The brokerage firm has maintained buy rating and increased its target price to ₹2124 a share.