Infosys Share Price Surges Nearly 5% Post 11% Jump in Q2 Net Profit

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During the morning deals on Friday, the Infosys stock surged 4.95% to Rs 1,490 apiece on the BSE while on the National Stock Exchange (NSE) it rallied 4.94% to Rs 1,490.

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Shares of IT-major Infosys surged nearly 5% to a one-month high on Friday after it announced an 11.1% jump in September quarter (Q2) net profit and announced a Rs 9,300 crore share buyback.

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The Bengaluru-based IT company also announced an interim dividend of Rs 16.5 per share.

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Additionally, it raised its FY23 revenue growth guidance to 15-16%, pushing the forecast towards the higher end of the previously-projected 14-16% band.

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The company’s revenue from operations stood at Rs 36,538 crore, clocking a 23.4 per cent growth over Rs 29,602 crore in the Q2FY22.

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Infosys has set the maximum buyback price at Rs 1,850, a premium of 30% over the last closing price.

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Under the proposed buyback, the maximum number of shares to be bought back would be 50,270,270 equity shares.

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Motilal Oswal Financial Services in their research report on Friday gave a “Buy” rating on the stock with a target price of Rs 1,630.

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We value the stock at 25x FY24E EPS and reiterate our Buy rating,” the report said.

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