The company has fixed October 28 as the record date for the dividend, while the payment date is set on November 10, 2022.Įarlier, for Infosys, Jefferies had said that the buyback is expected to support Infosys' share price amidst uncertain macro. Further, its consolidated cash and investments stood at ₹38,921 crore in Q2FY23 against ₹34,854 crore in Q1FY22.Īpart from the buyback, the Infosys board also approved an interim dividend of ₹16.50 per equity share. The buyback is subject to the approval of the members of Infosys by way of a special resolution and all other applicable statutory/ regulatory approvals.Īs of September 30, 2022, Infosys has a free cash flow of ₹4,752 crore compared to ₹5,106 crore in Q1FY23. Lastly, Indian Public, corporates, and others (2,844,320 shareholders) hold a 25.92% stake in the company. NRIs (47,373 shareholders) and Foreign Nationals and Overseas Corporate Bodies (12 shareholders) hold 0.82% and 0.04% of the company. While Indian financial institutions/ banks/ mutual funds (58 shareholders) hold 642,817,041 equity shares or 15.27% in Infosys.įurther, FPIs or FIIs which have a total of 1,421 shareholders hold a 31.31% stake in the company, while ADRs (1 shareholder) hold 13.53%. Also, the company would purchase a minimum of 25,135,135 equity shares under the buyback.Īs of September 30, 2022, Infosys promoter and promoter group (25 shareholders) hold 551,682,338 equity shares or 13.11% of Infosys. Notably, if the equity shares are bought back at the price below the maximum buyback price which is ₹1,850 apiece, then the actual number of equity shares bought back could exceed the maximum buy shares but will always be subject to the maximum buyback size of ₹9,300 crore.Īs per the filing, Infosys shall utilise at least 50% of the amount earmarked as the maximum buyback size which is aggregated to ₹4,650 crore. Under the proposed buyback, the maximum number of shares to be bought back would be 50,270,270 equity shares. Also, Infosys has allowed American Depositary Shares (“ADS") to convert their ADS into equity shares and subsequently can sell such shares on the Indian exchanges during the buyback period. The buyback will be carried through the open market route. On BSE, Infosys shares closed at ₹1,419.75 apiece down by 0.64%. This floor price is at a premium from the current market price. We value the stock at 28 times FY24E EPS, implying a target price of Rs 2,000," Motilal Oswal said.ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp.Infosys board has also approved a buyback price not exceeding ₹1,850 per equity share. Based on our revised estimates, the stock is currently trading at 25 times FY24 EPS. We expect it to be a key beneficiary of an acceleration in IT spending. “We expect Infosys to deliver margin on the higher side of its guidance band, with strong growth and reduced dependence on sub-contractors as attrition falls. Motilal Oswal Securities sees the stock at Rs 2,000. Digital revenue grew at 38.8 per cent YoY in CC terms and accounted for 59.2 per cent of the total revenue. Attrition inched up to 27.7 per cent due to a higher base. Margins for Infosys declined 200 bps sequentially to 21.5 per cent in March quarter, mainly due to supply-side pressure, higher subcontracting cost, fewer working days and lower utilisation. ![]() Similarly, it reported a 12 per cent year-on-year rise in net profit, compared to 7.4 per cent for TCS. ![]() Infosys said its revenue growth was 22.7 per cent year-on-year compared to 15.75 per cent for TCS. The March quarter numbers, it said, disappointed on most parameters, with revenue growth at 1.2 per cent sequentially in constant currency terms missing consensus estimate of 3 per cent, growth partly due to a one-off client-specific issue.ĮBIT margin of 21.5 per cent also fell below consensus estimate of 23.2 per cent, it noted. Nomura India said FY23 CC revenue guidance for Infosys at 13-15 per cent was ahead of Street estimates but margin guidance at 21-23 per cent fell short of it. We maintain Buy with a revised target of Rs 1,970 at 28 times March 2024 EPS, considering broad-based demand, steady market share gain and robust cash generation,” it said. “The operating performance miss would weigh on the stock in the near term. ![]() Net result is EPS cut of 2-4 per cent for FY2023-24, never a welcome prospect," Kotak said while suggesting a fresh target of Rs 1,975.Įmkay Global has cut its FY23 EPS estimate by 7.2 per cent and FY24 estimates by 4.9 per cent, factoring in the Q4 miss and lower margin guidance. "Front-ended revenue growth guidance of 13-15% impressed, while timing and quantum mismatch between headwinds and tailwinds has led to a reset in the EBIT margin band to 21-23 per cent.
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