Emkay recommends "Buy" on Infosys
Infosys' Q4 FY22 (2021-22) operating performance missed our expectations. Large deals intake remained healthy at $2.3 billion in Q4FY22 (48% net new) and $9.5 billion in FY22 (40% net new), giving good growth visibility for FY23 (2022-23). The deal pipeline remains healthy across deal sizes (highest ever for large deals). We cut FY23/FY24 estimates by 7.2%/4.9%, factoring in the Q4 miss and lower margin guidance. The operating performance miss would weigh on the stock in the near term. We maintain 'Buy' with a revised target price of Rs 1,970 at 28 times March '24E EPS (Earnings per share), considering broad-based demand, steady market share gain and robust cash generation.
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