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IT services major Infosys on Tuesday became the fourth Indian company to hit the $100-billion market capitalisation mark.
The other companies are Reliance Industries ($140 billion), Tata Consultancy Services ($115 billion) and HDFC Bank ($100.1 billion).
The shares of Infosys rose 1 per cent to hit ₹1,755.6 intra-day, pushing the company’s market cap to the $100-billion mark. At the end of the day’s trading, Infosys shares were at ₹1,721.5 apiece, nearly 1 per cent higher than Monday closing.
“This is a very significant milestone not only for Infosys but also for the domestic IT sector,” Suyog Kulkarni, an IT analyst with Reliance Securities, told BusinessLine . He said that after Salil Parekh took over as the CEO, Infosys has seen consistent growth.
“The CEO’s focus on increasing investments in digital technology and having a diversified portfolio has increased the client outreach. We expect Infosys to have superior revenue growth over the next two-three years. We expect Infosys market-cap to reach $110 billion by FY24,” Kulkarni said.
The Indian IT industry accounts for about 8 per cent of GDP, contributes to over half of services exports and 50 per cent of the foreign direct investment.
‘Showing real growth;
In a note to investors, ICICI Securities said Infosys has been one of the very few companies in the industry reporting an actual improvement in the underlying demand — and not a mere cyclical recovery from a low base. Its consistent performance has continued with organic growth of 4.8 per cent QoQ (CC) — the company’s best-ever June quarter in more than a decade. The quality of growth was healthy and broad-based, across verticals and geographies.
During the first quarter of FY22, Infosys raised its constant-currency revenue growth estimate to 14-16 per cent for the current fiscal from 12- 14 per cent, while maintaining the margin guidance at 22-24 per cent.
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