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Infosys Q2 numbers: Edelweiss upgrades EPS by 7–8%, target price at Rs 880

Updated : October 17, 2018 10:05 AM IST

The Q2 numbers of Infosys saw a beat on the topline and profits though margins were a miss.

Sandip Agarwal of Edelweiss said 4.2 percent constant currency growth is "a very high number". $2 billion of deal signing and 7,800 employee addition suggests that the sector has turned around in a big way and Infosys is a bigger beneficiary of that, said Agarwal.

“I do not want to comment much on the margins because the range was 22-24 percent. They are already at 23.7 in first half and in the second half, because of absence of wage hike and visa cost, it can improve by 70-80 bps which means it will breach top end of margin guidance by 40-50 bps in a worst case scenario,” he said.

One basis point is a hundredth of a percentage point.

“I do not see any reason for pulling out any negativity in these numbers,” he added.

"We have upgraded our earnings per share (EPS) guidance by 7-8 percent and our target price is Rs 880," he further mentioned.
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