Infosys shares plunged as much as 5.8% to an intra-day low of Rs 1,816. The stock was the major loser in the Nifty 50. It was despite an upward revenue guidance for the current fiscal year. During the pre-open session, the stock was 4% gap-down quoting at Rs 1,851. However, most brokerages raised concerns about the guidance being lower than the estimates.
Infosys ADR nosedives 6%
The Infosys ADR On the New York Stock Exchange fell as much as 6% to $21.515. The ADR shares declined after declaring its October-December quarter results for fiscal 2024-25 (Q3FY25). On Thursday, the company reported a rise of 11.4% in net profit standing at Rs 6,806 crore, compared to Rs 6,106 crore in the year-ago period. The revenue for the quarter came at Rs 41,764 crore, up 7.6% year-on-year.
Infosys Q3: Morgan Stanley says revenue guidance lower than estimates
The brokerage firm said the revenue guidance was lower than the estimates. It noted that the revenue guidance for Q4 FY25 implies -2.3% to 0.3%, against the expectation of -1% to 1%. Also, the higher components of third-party items are driving Infosys’s revenue. The firm maintained an ‘Overweight’ rating on the stock, with a target price of Rs 2,150. The company’s net headcount addition provides a reasonable acceleration in revenue growth.
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The company’s revenue growth was strong but appears weak internally, said Investec. The maintained its ‘Sell’ rating on the stock, with a target price of Rs 1,773, a downside of 8% from the closing price of January 16. The company’s improved revenue growth guidance implies a -2% to -0.2% sequential decline in Q4 FY25.
Infosys Q3: HSBC says sustainability of pass-through revenues in FY26 uncertain
According to HSBC, Infosys had a decent quarter in terms of revenue growth and margins. However, the brokerage firm said the sustainability of pass-through revenues in FY26 remains uncertain. HSBC has maintained its ‘Buy’ rating on Infosys, with a target price of Rs 2,120.
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