Tuesday, July 12, 2011

Infosys Q1 results analysis

Infosys Q1 consolidated net profit stood at Rs 1,720 crore, down 5.4% as compared to Rs 1,818 crore in previous quarter. The company’s revenues rose 3.2% in the quarter to Rs 7,485 crore. On a full year basis, net profit rose 15.72% from Rs 1,488 crore and revenues rose 21% from Rs 6,198 crore in the year-ago period.

The result was inline with consensus expectation but was dissapointed with the guidance given for Q2. The stock fell more than 4% in today's trade on heavy volumes.

For FY 2012 Infosys expects to clock an EPS of Rs. 130. At the CMP of Rs. 2791 the stock is currently trading at a PE multiple of 21.5 times based on FY 2012 earnings.

InvestorZclub believes that the stock might drift towards 2600 levels. Long term investors with at least 1 year horizon can enter the stock at that level for a 20% appreciation.

No comments:

Post a Comment

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...