Indiabulls Valuation for Infosys
We believe demand outlook for IT industry has already started to improve and is expected to gain momentum in next 1-2 quarters. In our view, Infosys is likely to derive maximum benefit from this as it invests in new client acquisition and emerges as the preferred vendor for its large clients as they consolidate their vendors.
Our DCF valuation, assuming a 12.4% of WACC and a 5% of terminal growth rate, gives a target price (TP) of Rs. 2,336, an upside of 4% over the CMP of Rs. 2,255.70. Hence, we maintain our Hold rating on the stock.
Click Here to Subscribe for Free Tips in Email