Infy's stock price has been steadily increasing over the past few years, with a compound annual growth rate (CAGR) of 15% from 2018 to 2022.
This growth can be attributed to the company's strategic investments in emerging technologies, which have led to significant revenue growth.
Infy's revenue has increased by 20% from 2020 to 2022, reaching a total of $35 billion in 2022.
The company's focus on innovation and customer satisfaction has also contributed to its growth.
Stock Price and Forecasts
Infosys' stock price has seen significant fluctuations over the years. The stock recorded returns of over 71% in 2020, rebounding from a low of INR585 at the start of the pandemic in mid-March 2020 to close the year at nearly INR1,300.
Analysts have mixed views on the Infosys share price forecast. In August, Jefferies lowered the price target for INFY stock price to INR1,619.70 down from INR1,700 it forecast in July. It maintained a 'buy' rating for the stock.
Motilal Oswal lowered their Infosys stock forecast to INR1,760 from INR2,000 in June, but maintained a 'buy' rating on 25 July.
ICICI Securities retained its rating to 'hold' for the stock on 25 July with a target price of INR1,506.
Wallet Investor was bullish on its INFY stock forecast, suggesting that the stock is a "very good long-term investment". In its Infosys stock forecast for 2022, the service predicted the stock to trade at INR1,549.349 by December 2022.
According to the site's Infosys stock forecast for 2025, the stock could reach INR 2,801.334 by December 2025.
Here is a summary of some of the price targets and forecasts mentioned:
The Infosys stock price continued its robust performance in 2021, gaining 50.3% as it closed the year at INR1,887.75.
Broker and Analyst Views
Infosys currently has a strong following among brokerage firms, with an average brokerage recommendation (ABR) of 2.33 on a scale of 1 to 5.
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Seven out of 21 recommendations are Strong Buy, which accounts for 33.33% of all recommendations.
Jefferies has kept Infosys as its top pick, given its growth leadership and strong execution.
The average target price for Infosys is $19.12.
Infosys is expected to deliver 11%-15% compound annual growth rate (CAGR) in revenue/EPS from 2023-2025.
The company is expected to be a key beneficiary of an acceleration in IT spends, highlighting opportunity in the digital segment.
Motilal Oswal expects Infosys to deliver margin on the lower side of its guidance band, with strong growth and reduced dependence on sub-contractors as attrition falls.
Here are the details of the analyst views:
Financial Estimates
Infosys Ltd has shown a remarkable revenue growth over the last 13 years, with a compound annual growth rate of 13%.
The company's revenue is expected to continue growing, but at a slower pace, with a projected CAGR of 8% for the next 3 years.
For the last 13 years, Infosys Ltd's operating income has grown at a steady rate of 10%.
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The projected CAGR for the next 3 years is 8%, indicating a slight decrease in growth rate compared to the previous 13 years.
Infosys Ltd's net income has also experienced steady growth over the last 13 years, with a compound annual growth rate of 9%.
This consistent growth in net income is a positive sign for the company's financial health and stability.
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