Infosys Turns 4th Largest Firm by M-cap After Q2 Show

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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.

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.

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

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.

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.

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

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

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.

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