Infosys Shares Witness Continuous Profit Booking in Recent Days
Infosys, a leading Indian IT company, has seen continuous profit booking in its shares in recent days. On Friday, June 9, around 2 pm, the stock was trading at Rs 1,264.10 with a decline of 1.46% on NSE. With concerns of slow earnings growth, Infosys shares have fallen by almost 17% since the beginning of the year, making it the second-worst performing stock in the Nifty-50. Adani Enterprises is the only stock that has performed worse than Infosys. Despite this, most analysts are still bullish on Indian IT firms, given their attractive valuations and recent performance.
Motilal Oswal, a domestic brokerage firm, has given a target price of Rs 1,520 for Infosys shares, which indicates a potential upside of around 18% from current levels. However, according to Bloomberg data, one in every five analysts covering the stock has given it a “Sell” rating, the highest number of Sell ratings for the stock since September 2017.
Infosys’ market capitalization is currently Rs 5.32 lakh crore. Although the stock has risen by 0.20% in the past month, the Nifty IT index has risen by almost 2%. The stock’s 52-week high is Rs 1,672.45, which it touched on December 1, 2022, while its 52-week low is Rs 1,215.45, which it touched on April 25, 2023.
According to Motilal Oswal, despite the adverse economic conditions, Infosys has continued to reassess its costs and strengthen the elasticity of its business. Additionally, the company is investing in technical capabilities to enhance customer experience and launch new products and services with differentiated value propositions. Infosys is investing in cloud, generative AI, cyber-security, IoT, and immersive technologies.
However, the company’s decision to invest in emerging technologies could result in higher costs and lower margins. Therefore, investors are advised to seek advice from a certified expert before making any investment decisions.
Disclaimer: The views and investment advice provided by experts on Moneycontrol are their own and not those of the website and its management. Moneycontrol advises users to seek advice from a certified expert before making any investment decisions.
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