External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Equity Bottom-Up

<p>INFO reported a growth of 6.3% QoQ CC, ahead of our estimate of 5.7%, on the back of a broad based performance. Large deal TCV of USD2.15b was a tad soft (net new at 37%). However, the management indicated good traction in medium and small size deals, and reiterated that the pipeline remains strong on robust demand. EBIT margin dipped 10bp QoQ to 23.6%, above our estimate of 22.3%, despite the impact of higher subcontracting expenses and wage hike in 2QFY22.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

INFO reported a growth of 6.3% QoQ CC, ahead of our estimate of 5.7%, on the back of a broad based performance. Large deal TCV of USD2.15b was a tad soft (net new at 37%). However, the management indicated good traction in medium and small size deals, and reiterated that the pipeline remains strong on robust demand. EBIT margin dipped 10bp QoQ to 23.6%, above our estimate of 22.3%, despite the impact of higher subcontracting expenses and wage hike in 2QFY22.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong all-round beat, guidance revision above our expectation

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

<p>Mindtree: Mindtree (MTCL) delivered an exceptional quarter with double-digit QoQ growth and beat on margins despite wage hikes and supply side issues. The dependence on the top account is coming down and growth was broad-based across verticals/geographies/service lines. Mindtree's growth momentum will continue, supported by non-T1 accounts (+17.6% QoQ), customer success (+21.8% QoQ) and investments in Europe (manufacturing). Its sustainable structural improvement is validated by (1) the uptick in Q2 deal TCV at &gt;USD 300mn and lower dependence on non-T1 account, (2) improved cross-sell and addition of strategic logos (seven in Q2), and (3) healthy growth in the travel vertical, supported by core modernisation.</p>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Mindtree: Mindtree (MTCL) delivered an exceptional quarter with double-digit QoQ growth and beat on margins despite wage hikes and supply side issues. The dependence on the top account is coming down and growth was broad-based across verticals/geographies/service lines. Mindtree's growth momentum will continue, supported by non-T1 accounts (+17.6% QoQ), customer success (+21.8% QoQ) and investments in Europe (manufacturing). Its sustainable structural improvement is validated by (1) the uptick in Q2 deal TCV at &gt;USD 300mn and lower dependence on non-T1 account, (2) improved cross-sell and addition of strategic logos (seven in Q2), and (3) healthy growth in the travel vertical, supported by core modernisation.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: Infosys, Wipro, Mindtree

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

<p>About the stock: Infosys Ltd (Infy) is one of the leading IT player catering to BFSI, retail, communication, manufacturing &amp; hi tech verticals.</p>
<ul>
<li>The company generates &gt;50% of revenues from digital technologies</li>
<li>Dividend payout (&gt;80%), margins (&gt;20%) and RoCE (&gt;31%) key positives</li>
</ul>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

About the stock: Infosys Ltd (Infy) is one of the leading IT player catering to BFSI, retail, communication, manufacturing &amp; hi tech verticals.

The company generates &gt;50% of revenues from digital technologies
Dividend payout (&gt;80%), margins (&gt;20%) and RoCE (&gt;31%) key positives

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Infosys Ltd: Robust Revenue Guidance Keeps Us Positive

External broker reports(aggregated public sources), Axis Direct

Axis Direct

<p>We recommend a BUY rating on the stock and assign a 28x P/E multiple to its FY23E earnings of Rs 62.3/share to arrive at a TP of Rs 1,740/share, implying an upside of 10% from CMP.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We recommend a BUY rating on the stock and assign a 28x P/E multiple to its FY23E earnings of Rs 62.3/share to arrive at a TP of Rs 1,740/share, implying an upside of 10% from CMP.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Infosys: Revenue Beat, Margins Below Expectations; Upgrade in Revenue Guidance

Thematic (Sector/Industry)

<p><strong>Infosys</strong>: We maintain BUY on Infosys (INFY), following the decade best Q1 growth and a strong growth outlook. Revenue growth guidance for FY22E was increased to 14-16% CC (12-14% earlier) and the EBIT margin band was maintained at 22-24% (despite the near-term supply crunch). INFY’s growth trajectory remains strong, supported by (1) a strong deal pipeline (higher QoQ), release in pent-up demand to restart the delayed projects, and sustainable improvement in large deals (USD 9.8bn TTM new large deal wins); (2) momentum across verticals – BFSI (nine large deals in Q1 vs six in Q4), retail, manufacturing, life-science and utilities, notwithstanding the lower net-new bookings; (3) structural operational pivots of offshoring and utilisation mitigating the near-term impact from higher sub-contracting; (4) uptick in fresher onboarding (35k in FY22 vs. 25k planned earlier and 21k in FY21) towards demand fulfilment and offsetting the near-term attrition surge. We remain positive on INFY (top pick in tier-1 IT) with &gt;13% EPS CAGR and &gt;40% RoIC valuing the company at INR 1,730, based on 28x Jun-23E EPS.</p>
<p><strong>L&amp;T Technology Services</strong>: We maintain REDUCE on L&amp;T Technology Services (LTTS), despite a slightly better Q1 revenue performance. Revenue guidance has been increased to 15-17% growth for FY22 (13-15% earlier), which implies a decelerated trajectory of 2-3% CQGR (as compared to 4.2% QoQ delivered in Q1FY22), despite a base benefit (FY21 at -6%). Two wins with TCV &gt;USD 25mn (similar to Q4) will support growth in the transportation vertical. LTTS' historical volatility in the large accounts bucket (&gt;USD 20mn accounts) and volatility due to variability in segmental operating profile are reflected in the growth guidance of ~800bps below its strongest year.</p>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Infosys: We maintain BUY on Infosys (INFY), following the decade best Q1 growth and a strong growth outlook. Revenue growth guidance for FY22E was increased to 14-16% CC (12-14% earlier) and the EBIT margin band was maintained at 22-24% (despite the near-term supply crunch). INFY’s growth trajectory remains strong, supported by (1) a strong deal pipeline (higher QoQ), release in pent-up demand to restart the delayed projects, and sustainable improvement in large deals (USD 9.8bn TTM new large deal wins); (2) momentum across verticals – BFSI (nine large deals in Q1 vs six in Q4), retail, manufacturing, life-science and utilities, notwithstanding the lower net-new bookings; (3) structural operational pivots of offshoring and utilisation mitigating the near-term impact from higher sub-contracting; (4) uptick in fresher onboarding (35k in FY22 vs. 25k planned earlier and 21k in FY21) towards demand fulfilment and offsetting the near-term attrition surge. We remain positive on INFY (top pick in tier-1 IT) with &gt;13% EPS CAGR and &gt;40% RoIC valuing the company at INR 1,730, based on 28x Jun-23E EPS.
L&amp;T Technology Services: We maintain REDUCE on L&amp;T Technology Services (LTTS), despite a slightly better Q1 revenue performance. Revenue guidance has been increased to 15-17% growth for FY22 (13-15% earlier), which implies a decelerated trajectory of 2-3% CQGR (as compared to 4.2% QoQ delivered in Q1FY22), despite a base benefit (FY21 at -6%). Two wins with TCV &gt;USD 25mn (similar to Q4) will support growth in the transportation vertical. LTTS' historical volatility in the large accounts bucket (&gt;USD 20mn accounts) and volatility due to variability in segmental operating profile are reflected in the growth guidance of ~800bps below its strongest year.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily (Technology Services): Infosys, L&T Technology Services

India

Infosys Limited provides IT consulting and software services, including e-business, program management and supply chain solutions. The Group's services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses specializing in the insurance, banking, telecommunication and manufacturing sectors.

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Infosys Ltd Sp Adr (INFY US)

Strong all-round beat, guidance revision above our expectation

INFO reported a growth of 6.3% QoQ CC, ahead of our estimate of 5.7%, on the back of a broad based performance. Large deal TCV of USD2.15b was a...

Motilal Oswal

HSIE Results Daily: Infosys, Wipro, Mindtree

Mindtree: Mindtree (MTCL) delivered an exceptional quarter with double-digit QoQ growth and beat on margins despite wage hikes and supply side...

HDFC Securities

Infosys Ltd: Robust Revenue Guidance Keeps Us Positive

Infosys Ltd (Infy) is one of the leading IT player catering to BFSI, retail, communication, manufacturing & hi tech verticals. The company...

ICICI Securities Limited

Infosys: Revenue Beat, Margins Below Expectations; Upgrade in Revenue Guidance

We recommend a BUY rating on the stock and assign a 28x P/E multiple to its FY23E earnings of Rs 62.3/share to arrive at a TP of Rs 1,740/share,...

Axis Direct

HSIE Results Daily (Technology Services): Infosys, L&T Technology Services

We maintain REDUCE on L&T Technology Services (LTTS), despite a slightly better Q1 revenue performance. We maintain BUY on Infosys (INFY),...

HDFC Securities

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