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Infosys surpassed the ₹7 lakh crore mark in market capitalisation on Tuesday, becoming the fourth Indian firm, behind Reliance Industries, TCS and HDFC Bank.
Infosys closed at ₹1,656.75 on the BSE, up ₹25.40 or 1.56 per cent. The company recorded a market cap of ₹7.05 lakh crore at closing. It recorded a fresh 52-week high of ₹1,658.70 and touched a low of ₹1,636.40 during the day. The on Tuesday opened at ₹1,641 as against the previous close of ₹1,631.35.
On the NSE, it closed at ₹1,657, up ₹25.45 or 1.56 per cent. It recorded a fresh year high of ₹1,658.65.
The elite club
The tech major ranked fourth on the BSE in terms of market cap. Reliance with ₹13.25 lakh crore is at the top, followed by TCS with ₹12.13 lakh crore and HDFC Bank Ltd with ₹7.93 lakh crore.
The company’s stock has gained nearly 7 per cent in the past two weeks after it announced the results for Q1 FY 2022.
For the quarter ended June, its net profit rose 22.7 per cent year-on-year to ₹5,195 crore compared with the same period last year. Revenues grew 17.9 per cent to ₹27,896 crore in the first quarter of FY22. On a sequential basis, the net profit grew 2.3 per cent, a tad below street expectation, and revenues rose 6 per cent.
The tech major upped its FY22 revenue guidance to 14-16 per cent on the back of what it termed its best performance in a decade, thanks to large deal wins and robust revenue growth in the first quarter of 2021-22. However, it retained the margin guidance at 22 -24 per cent.
The Bengaluru-headquartered company won deals worth $2.6 billion in the first quarter. Infosys had been ahead of its Indian peers in the past year in signing more deals contributing over $100 million in revenue. Its number of active clients in the $100 million-plus category increased to 34 in Q1-2021 against 25 in Q1-2020.
Brokerages had also reacted positively to the stock post its Q1 results. Emkay Securities had maintained a Buy rating on the stock at the target price of ₹1,800 post its results update "considering a strong demand environment, steady market share gain, and robust cash conversation.”
Motilal Oswal Research had also maintained a Buy rating on the stock at the target price of ₹1,770 with a 12 per cent upside.
To deploy Finacle at UnionBank of the Philippines
Separately, Infosys announced that the UnionBank of the Philippines will be deploying its Finacle Digital Banking Solution Suite on Cloud.
Infosys Finacle is a part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys. UBP, a leading bank in the Philippines will migrate from an on-premise deployment to the Finacle Digital Banking Solution Suite on Cloud. Over 8 million customer accounts will be considered for migration to the new software-as-a-service (SaaS) platform, it said.
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