Infosys share price: The results of the fourth quarter (Q4FY25) of the country’s veteran IT company Infosys were weakened by the market estimate. The company’s profits decreased by 12% and the operation has increased by 7.9% (YOY). Releasing the result, Infosys has estimated the lowest income growth for FY26 in the last decade. He did not release the income estimate during the year of Corona epidemic. After the Q4 result, brokerage firm Nuvama (NUVAMA) has retained the BUY rating on Infosys. However, from the next 12 months perspective, the target price has been cut by about 9 per cent. Brokerage says that there are challenges in the Near Term but medium to long term valuation is attractive.
Infosys Stock Target: Price will go to ₹ 1700
Brokerage firm Nuwama has maintained the advice of buy on infosys. However, the target price per share has been reduced from Rs 1870 to Rs 1700. On 17 April 2025, the stock price closed at Rs 1420. In this way, the current price can see a strong jump of about 20 percent in the stock. In 2025, the stock has fallen by about 25 per cent so far. The stock has slipped 11 percent in 1 month.
The income of the fourth quarter (Q4Fy25) of Infosys has declined by 3.5% CC (Constant Currency) on a quarter basis (QOQ) and 4.8% on the annual basis (YOY). This is 1% CC (QOQ) less than brokerage and market estimate. The company’s ebit margin was 21% on a quarterly basis. It was 40 BPS low on a quarterly basis and 90 BPS less on an annual basis, but it was better than estimated.
Management has given revenue growth guide for FY26 between 0–3% and Ebit margin guidance 20–22%. The company’s total contrast (TCV) was USD 2.6 billion dollars. Which indicates an increase of 4.2% on a quarterly basis and a decline of 42% on an annual basis. The weak results of Q4 were mainly due to a decline in third-party revenue (two-thirds of fall from it). This indicates that the company’s quarterly performance was largely according to estimated.
The weak estimates of infosys’ income indicate a huge uncertainty about business worldwide in view of the US fee. Infosys said that his income may remain flat in poor conditions during the current financial year, while income in the best condition is expected to increase by 3 percent.
Also Read: IT sector collapsed due to weakness of TCS, Infosys and Wipro, NIFTY IT
Infosys: What is the commentary of brokerage
Brokerage firm Nuwama said in its report after the results that the company’s third-party revenue was weak, which affected overall revenue. Two-thirds of the decline in revenue was due to a decrease in third party cost and the rest came due to a decline and seasonal weakness.
The management hopes that the margin will improve the current level due to the project Maximus and Lower Third-Party Revenue. For FY25, Infosys recorded a revenue of USD19.3 billion (+4.2% cc yoy) – which had an Ebit margin of 21.1% (+40bp yoy).
Brokerage says, Infosys Management has kept the Revenue Growth Guidance of FY26 0-3%. This is slightly less than expected, but is good at the weakened exit rate. The Ebit margin is expected to remain in the range of 20-22%. Macro uncertainty has increased in recent weeks, but the company has not yet shown any change in the deal execution timeline. Overall, the company is confident of acquiring guidance.
Nuwama said that there are challenges in the Near Term but the valuation in the medium to long term is attractive. Brokerage hoped that due to Macro uncertainty, there would be a challenge for demand for the next one or two quarters. Brokerage’s medium to long -term attitude on the sector is positive. The stock of Infosys has been corrected by about 25% (YTD) so far this year, looking at the current levels. Which is trading at 19x FY27, below the long -term average multiple.
Infosys: How to be Q4 results
In the fourth quarter (Q4Fy25) of FY 2025, the net profit of Infosys declined by 11.7 per cent to Rs 7,033 crore. During this period, the company’s income increased by 7.9 percent to Rs 40,925 crore. In the entire financial year 2025, the company’s net profit has increased by 1.8 percent and the income increased by 6.1 percent. Infosys income increased by 3.9 per cent in the dollar, while TCS income increased by 3.8 per cent.
The board of Infosys announced a record date for dividend along with the results of the March quarter. The company said in the filing, “The final dividend of Rs 22 per equity share for the financial year ended on 31 March 2025 has been recommended. The record date for payment of the annual general meeting and final dividend is 30 May 2025. The dividend will be paid on 30 June 2025.”
(Disclaimer: Brokerage has advised shopping in the stock here. Investment in the market which is subject to Khimon. Consult your advisor before making investment decisions.)
First Published – April 18, 2025 | 4:10 pm IST
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