India's second largest software exporter, the Nasdaq-100 listed IT company has twice this year set the momentum for strong institutional and retail buying through higher-than-expected quarterly earnings.
The company showed an above 50 per cent jump in consolidated net profit for the quarter ending September 30.
Infosys raised its revenues guidance to $3 billion for the full year, estimating a growth of over 40 per cent for the full-year which set the buying momentum and upward rating for other IT companies and other index frontline stocks.
Despite concerns of a higher dependence on the US (63 per cent) for its revenues, Infosys expects to sustain strong volume growth. It boasts of the best operating margins at about 30 per cent levels.
Infosys, with an over 11 per cent weightage in the Sensex (the 30-share sensitive index of the Bombay Stock Exchange), has moved up smartly after its bonus cum-stock-split announced in July this year. The stock has risen 33 per cent since then to Rs 2,200 levels. We expect strong earnings performance for the next two quarters, led by volume growth.
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Also read: The amazing Infosys story
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