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NEW DELHI: Infosys shares declined nearly 5 per cent in early trade on Monday.
The IT major on Friday reported a 10.51 per cent year-on-year (YoY) rise in consolidated profit at Rs 4,078 crore for March quarter, beating Rs 3,957 crore net estimated by analysts in an ET NOW poll.
After the company revelaed its fourth-quarter numbers and guidance for FY20, most brokerages cut their target prices on the stock by as much as 17 per cent, while some downgraded it.
Infosys guided for lower profits in FY20, mirroring the 4 per cent fall in its American Depository Receipts (ADRs).
Infosys forecast lower-than-expected growth at 7.5-9.5 per cent for FY20 and slashed margin expectations to 21-23 per cent.
Its fourth-quarter profits increased 10.4 per cent to Rs 4,074 crore and revenue by 19.1 per cent to Rs 21,539 crore.
BROKERAGES ON INFOSYSHSBC maintained a hold rating on the stock but lowered the target price to Rs 760 from Rs 780.
Nomura downgraded the stock to reduce, with a target price of Rs 680.
The brokerage highlighted that the large segments of the company underperformed.
It said that the weaker growth outlook and likely slower EPS CAGR underpin its cautious stance on the stocks.
Centrum has downgraded the stock to ‘add’ from ‘buy’ and cut target price by 3.8 per cent to Rs 775.
Dolat Capital cut rating to ‘sell’ from ‘buy’ and reduced target price by 16.7 per cent to Rs 700.
HDFC Securities downgraded the stock to ‘neutral’ from a ‘buy’ and lowered target price by 6 per cent to Rs 755.
