Wednesday, March 30, 2016

Infosys Likely To Trend Higher Before Results



Trading Idea – At current levels of INR1,220, Infosys is interesting and can deliver decent near-term returns with the company scheduled to report 4Q16 results on April 15, 2016.

Idea Rationale – Infosys reported strong results for 3Q16 and also revised FY116 guidance upwards. With favourable exchange rates, I expect 4Q16 results to remain robust. Further, I expect higher dividends in 4Q16 with Infosys having significant cash glut. I will not be surprised if the stock trends higher by another 10% from current levels after 4Q16. 

Long-Term View – Infosys is witnessing gradually transition from a pure process driven company to a company that is focusing increasingly on innovation to serve clients better. With $4.7 billion in cash & equivalents, I see Infosys pursuing more inorganic growth to foray into innovation driven technologies and assets. I have a bullish view on Infosys for the long-term as well. 

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1 comment:

  1. Identifying a multibagger stock has never been so easy but once we identify it at the earliest then it's called true multibagger the hidden gem . Your post on Infosys will surely help tons of multibagger lovers. Thank you for the post please keep it on.

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