Infosys became the fourth Indian firm to cross market capitalisation of $100 billion after TCS, Reliance Industries Limited and HDFC Bank.

Infosys signboard
Money Market cap Tuesday, August 24, 2021 - 17:51

IT major Infosys’s market capitalisation (market cap) crossed the $100 billion mark on Tuesday, August 24 as its stock touched an all-time high of Rs 1,755.60 on the Bombay Stock Exchange (BSE). Infosys became the fourth Indian company to cross market cap of $100 billion after Tata Consultancy Services (TCS), Reliance Industries Limited (RIL) and HDFC Bank. RIL has a market cap of $140 billion, followed by TCS at $115 billion, and HDFC Bank at $100.1 billion.

Infosys has been among the fastest growing companies over the past few years due to broad-based traction in cloud, cyber security, customer experience, among others, analysts told The Mint. Infosys’ net profit in the June quarter rose 23% annually to Rs 5,195 crore. 

The stock has seen an upsurge after the company management raised revenue growth to 14-16% for fiscal 2022 last month. Strong Q1 growth, good order wins and a formidable deal pipeline pushed the company’s shares, according to Infosys. 

Reiterating its buy rating on the stock, Motilal Oswal stated, “We expect Infosys to deliver another year of an ongoing guidance raise as the current one does not fully factor in strong technology demand and execution of its record high deal wins. We continue to view Infosys as a key beneficiary of a recovery in IT spends in FY22, given its capabilities around Cloud and Digital transformation. We value Infosys at 27x FY23E earnings per share and reiterate our buy rating.”

Infosys is witnessing strong demand from clients across segments as clients are looking to aggressively invest in IT to cut their cost in legacy operation and redirect those savings in new areas of growth, Edelweiss Research said in a note to its investors. “Despite supply-side pressure, Infosys is targeting to deliver margins in a similar range like FY21 (if we exclude one-time cost benefit impact from FY21) as it benefits from higher offshoring and automation,” it added.

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