Infosys becomes 5th Indian firm to hit ₹5 trillion in market capitalization

INfosys

On Thursday, Infosys crossed the mark of ₹5 trillion in market capitalization. With the stocks jumping up to 61% this year, Infosys became the 5th Indian firm and only the second IT firm to achieve this milestone.

Today on the Bombay Stock Exchange (BSE), the stocks of Infosys reached a record high at ₹1,185 per share. The share price rose 4.3% from its previous jump, resulting in breaching of the golden ₹5 trillion marks of its market cap. The company’s overall growth in the September quarter is deemed as better-than-expected.

As the Indian multi-national company’s strength is sustainably increasing in the domain of digital services operations, Infosys raised its yearly growth forecast already.

As of now, Reliance Industries Limited (RIL) is the country’s most esteemed and valued firm with a total market capitalization of a whopping ₹15.43 trillion. RIL is followed by TCS with a market cap of ₹10.42 trillion and HDFC Bank which holds a market cap of ₹6.62 trillion.

From an earlier revenue growth guidance of 0 to 2%, Infosys raised its value to 2 to 3% for the year until 31 March 2021. The raise has been done in constant currency terms and the margin guidance has also been increased as well to 23-24% by the IT giant.

As compared to the last year’s profit for this quarter, a steep rise of 20.5% to ₹4,845 has been observed. The total revenue swelled by 8.6%, taking the total to ₹24,570 crores. On a yearly basis, the Dollar revenue increased by 3.2%. Sequentially, the Dollar revenue raised to $3.31 billion with the help of chunky deal wins valued at $3.15 billion. In the last three months, the operating margin also increased by 2.7% overall.

The stock target price by brokerage has swelled to ₹1,280 from ₹1,150. According to Bloomberg, out of a total of 47 brokers, 41 recommend buying the stakes at Infosys and only two of them recommend selling. While four of the tracked brokers have listed its stakes to hold.

After Infosys’ September quarter earnings, several brokerage companies have raised their target price on the scrip. While, Motilal Oswal has retained Buy, with increasing its target price by 19% to ₹1,355/share. Companies like Emkay has also raised its target price to ₹1,360/share.

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