Infosys Share Price Falls 11% In 1 Month, Motilal Oswal Says Buy For 28% Upside

The share price of Infosys falls around 11% in the last 1 month, and fell by 3.38% in the last 5 days. On September 22, its share closed at Rs. 1,368 a piece, falling by 0.67% intra day. After the US Federal Reserve raised the interest rate by 75 bps, the stock markets went under pressure globally. The trend majorly dragged down the IT stocks, reflecting the same course in India. However, Motilal Oswal, a reputed brokerage firm suggests buying the stock of Infosys with a target price of Rs. 1760 a piece, for a 28% upside.

In Q1FY23 operating margins of the major IT firms have shown a downbound due to wage hikes, supply-side challenges, etc. Infosys in its FY22 annual report also stated, "An economic slowdown or other factors may affect the economic health of the United States, the United Kingdom, the European Union (EU), Australia or those industries where our revenues are concentrated. Our clients may operate in sectors which are adversely impacted by climate change, which could consequently impact our business and reputation."

In the past 6 months this multibagger IT stock's share price has fallen by 26.94%, and in last 1 year its share price has fallen by 21.49%. However, in the past 5 years, it has given 204.03% to the shareholders. Its 52-week high range is Rs. 1,953.90, and 52-week low range is Rs. 1,360.00. It is a large-cap IT stock with a market capitalization of around Rs. 575,609 crore. The company is currently offering a 2.27% dividend yield.

Commenting on the stock, Emkay Global Financial Services earlier mentioned in a report, "Infosys has retained FY23 EBITM guidance at 21-23%, but expects it to be at the lower end of the guided range, considering Q1 performance and cost woes. Optimization in subcontracting costs, higher utilization, automation, pyramid rationalization, pricing, and cost efficiencies remain the key margin levers that gives management confidence about margin recovery in the next three quarters."