Infosys shares gain nearly 3% as Motilal Oswal upgrades to Buy, cites three key factors
Motilal Oswal attributed this upgrade to several factors, including a shift from hardware-led capital outlay to services-led spending.
- Nov 24, 2025,
- Updated Nov 24, 2025 12:34 PM IST
Infosys rose nearly 3% during Monday trade today after brokerage Motilal Oswal raised its stance on Infosys from neutral to buy. Motilal Oswal attributed this decision to several factors, including a shift from hardware-led capital outlay to services-led spending, which is expected to benefit Infosys’ portfolio that is heavily weighted towards discretionary services.
As enterprises invest more broadly in artificial intelligence, Infosys is set to be a key beneficiary, particularly through the adoption of its proprietary AI stack, Topaz suite, and comprehensive application services.
Additionally, the brokerage pointed out that Infosys’ shares are currently trading close to their 10-year average price-to-earnings multiple and at a 13% discount relative to the five-year average, suggesting appealing valuations.
Infosys shares rose 2.61% to Rs 1584.95 against the previous close of Rs 1544.60. Market cap of the firm rose to Rs 6.48 lakh crore.
Motilal Oswal stated, "We believe upside risks outweigh the potential downside, offering an attractive risk-reward setup," while noting Infosys has raised the lower end of its guidance for both quarters in the first half of financial year 2026, indicating a steadier demand environment and greater business visibility.
The brokerage expects that revenue quality will surpass last year’s, aided by lower pass-through revenue and efficiency improvements from Project Maximus.
Motilal Oswal has also raised its forecasts for Infosys’ growth in financial years 2027 and 2028 to 5.5% and 8.5% respectively, reflecting an anticipated demand recovery and further acceleration.
The upgrade is underpinned by Motilal Oswal’s view that Infosys’ AI initiatives and modernisation capabilities should come back into favour as clients expand their technology programmes. According to Motilal Oswal, the improved outlook, supported by raised growth estimates and appealing valuations, provides an "attractive risk-reward setup" for investors. The firm also highlighted that Infosys’ proprietary technologies and services position it to benefit as clients scale up modernisation and AI strategies.
Infosys rose nearly 3% during Monday trade today after brokerage Motilal Oswal raised its stance on Infosys from neutral to buy. Motilal Oswal attributed this decision to several factors, including a shift from hardware-led capital outlay to services-led spending, which is expected to benefit Infosys’ portfolio that is heavily weighted towards discretionary services.
As enterprises invest more broadly in artificial intelligence, Infosys is set to be a key beneficiary, particularly through the adoption of its proprietary AI stack, Topaz suite, and comprehensive application services.
Additionally, the brokerage pointed out that Infosys’ shares are currently trading close to their 10-year average price-to-earnings multiple and at a 13% discount relative to the five-year average, suggesting appealing valuations.
Infosys shares rose 2.61% to Rs 1584.95 against the previous close of Rs 1544.60. Market cap of the firm rose to Rs 6.48 lakh crore.
Motilal Oswal stated, "We believe upside risks outweigh the potential downside, offering an attractive risk-reward setup," while noting Infosys has raised the lower end of its guidance for both quarters in the first half of financial year 2026, indicating a steadier demand environment and greater business visibility.
The brokerage expects that revenue quality will surpass last year’s, aided by lower pass-through revenue and efficiency improvements from Project Maximus.
Motilal Oswal has also raised its forecasts for Infosys’ growth in financial years 2027 and 2028 to 5.5% and 8.5% respectively, reflecting an anticipated demand recovery and further acceleration.
The upgrade is underpinned by Motilal Oswal’s view that Infosys’ AI initiatives and modernisation capabilities should come back into favour as clients expand their technology programmes. According to Motilal Oswal, the improved outlook, supported by raised growth estimates and appealing valuations, provides an "attractive risk-reward setup" for investors. The firm also highlighted that Infosys’ proprietary technologies and services position it to benefit as clients scale up modernisation and AI strategies.