Infosys became the fourth Indian firm to reach Rs 7 lakh crore mark in market capitalisation after its stock surged to lifetime high today.
Market heavyweights Reliance Industries, Tata Consultancy Services Ltd and HDFC Bank Ltd have already achieved the milestone of crossing Rs 7 lakh crore in market cap.
Infosys share touched an all-time high of Rs 1,658.7, rising 1.65%, amid a strong rally in equity markets. Currently, Infosys share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 1.20 lakh shares amounting to turnover of Rs 19.67 crore changed hands on BSE.
Market cap of the firm stood at Rs 7.04 lakh crore on BSE.
The stock closed 1.39% or Rs 22.75 points higher at 1,654.
The IT share has gained 72% in one year and risen 31.71% since the beginning of this year.
The stock has climbed 5.18% or Rs 81 since the firm announced its Q1 earnings.
On July 14, Infosys reported a nearly 23 per cent rise in net profit for the June quarter on Wednesday. Net profit in last quarter stood at Rs 5,195 crore against Rs 4,233 crore in the year-ago period.
Infosys raised its revenue guidance for FY22 to 14-16 per cent from the previous outlook of 12-14 per cent. The firm said its confidence stemmed from strong Q1 growth, good order wins and robust deal pipeline which boosted its share.
The stock hit a record high of Rs 1,597.25 against previous close of Rs 1,576.90 on July 15.
Brokerages also became positive on prospects of the stock.
Motilal Oswal reiterated its buy rating on the stock.
"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 have cut our FY22E/FY23E EPS estimate by 3.2%/1.6% to encompass margin pressure due to ongoing supply crunch in the industry and expected increase in travel expenses.
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."
Jyoti Roy - DVP- Equity Strategist, Angel Broking said, "Post the Q1FY22 results the management has also increased their revenue growth guidance to 14-16% in constant currency terms while margin guidance has been retained at 22-24% for FY2022.
At current levels Infosys is trading at P/E multiple of 25xFY23 EPS estimate of Rs. 63.0 which is at a discount to some of the mid cap IT stocks. We expect Infosys to register strong revenue/PAT growth of 18.1%/17.5% over FY2021-FY2023 and maintain our positive view on the stock."
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