Infosys a market performer: Khandwala Securities

Khandwala Securities has rated Infosys Technologies as a market performer with target price of Rs 1,490 in its April 16, 2009 research report.

“Infosys reported 4.3% decline to USD 1,121 million of revenues for 4QFY09 (USD 1,134 million in constant currency); little lower than our expectations of USD 1,130 million. Revenues in rupee terms remained in-line with our estimates due to better average rupee realization (Rs 50.24/USD as against our estimates of Rs 49.8/USD). Net profit in rupee terms is higher than our expectations primarily due to rupee rate assumption and tax reversal of Rs 150 million.”

“We have revised FY10E USD revenue estimates down by 5% factoring lower billing rates and volumes. We cut our recommendation to Market Performer on the stock with a revised target price of Rs 1,490 at 14x FY11E earnings (from Rs 1,525 earlier), considering stock out-performance in recent past, weaker FY10 guidance and missing positive catalysts in near future,” says Khandwala Securities’ report.

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