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Thursday, December 01, 2011

Fw: Investor's Eye: Pulse - GDP growth moderates to 6.9% in Q2FY2012; Update - Infosys

 

Sharekhan Investor's Eye
 
Investor's Eye
[November 30, 2011] 
Summary of Contents
PULSE TRACK
  • GDP growth moderates to 6.9% in Q2FY2012

STOCK UPDATE
Infosys      
Cluster: Evergreen
Recommendation: Hold
Price target: Rs2,772
Current market price: Rs2,607
Infosys warns of a guidance miss
Infosys warns of a guidance miss. Is it extra conservatism or further macro deterioration? 
Infosys' recent management commentary saying it could possibly missing the upper end of the revenue guidance for Q3FY2012 and FY2012 has again raised concerns about the sector. K Balakrishnan, CFO, Infosys has said that "in an uncertain environment like this, it is very difficult to say if we will meet our third quarter guidance of revenue growth of 3.2 - 5.4% and in turn the FY2012 revenue guidance of 17.1-19.1%."

Valuation: In the last two weeks Infosys' stock has corrected close to 7% owing to subdued market conditions and growing apprehension on the sector's fundamentals. Going forward, news flows will dictate the stock performance in the near term and the Street will keenly wait for Q3FY2012 earnings next month to get more clarity on the future roadmap. We continue to remain cautiously optimistic on the sector and maintain our Hold rating on Infosys with a price target of Rs2,772.
 
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Click here to read report: Investor's Eye 
     
Regards,
The Sharekhan Research Team
myaccount@sharekhan.com
 


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