Infosys June quarter numbers may have come in below expectations, but the announcement of bonus issue perked up investor sentiment with the stock crossing Rs 3 lakh crore in market capitalisation for the first time ever as it hit a new high. Infosys share price rallied nearly 6 per cent to Rs 1384.40, its lifetime high level.
Infosys share price had hit its previous high of Rs 1,358 on July 3, 2018 in intra-day trade.
At fresh high price of Rs 1384.40, the market value of IT giant quoted at Rs 3.02 lakh crore, data available on BSE showed.
Brokerage Motilal Oswal Securities rated Infosys ‘buy’ with a target price of Rs 1,550. “With the quarter largely in-line, our EPS estimates have changed little. Although it looks like INFO will achieve the lower end of its guidance in FY19, we continue to reckon the margin band is conservative, with the share of Digital inching up, recent INR depreciation, and investments already defined internally,” said MOSL in a results review report.
“Our price target of Rs 1,550 discounts forward earnings by 17x, based on our thesis of a narrowing gap with TCS. We maintain Buy,” it added.
Emkay Global, however, maintained ‘sell’ on Infosys, saying no good news is bad news.