Infosys rose 1.3% to Rs 1,898, recouping the 1.1 % fall earlier during the day, to Rs 1,850. The stock also hit Rs 1,900.10, a 52-week high for the scrip, as investors bet on strong Q2 results from this IT bellwether. As many as 1.2 lakh shares changed hands in the counter on BSE.
The stock has witnessed a sustained rise over the past few months amid some intermittent correction. From Rs 1,241.75 on 14 June 2006, the scrip has risen 52.8%.
The scrip discounts the company's upper-band guided annual EPS of Rs 62.87 for FY 2007 (year ending 31 March 2006) 30.1 times.
Infosys announces Q2 September 2006 results on Wednesday (11 October 2006). Eleven brokerages have forecast between 37.7% to 43.3%, growth in Infosys' Q2 September 2006 net profit to between Rs 834.80 crore and Rs 868.50 crore, compared to Rs 606 crore in Q2 September 2005. Net sales are forecast to expand between 44% and 46.9%, to Rs 3,293.30 crore and Rs 3,370.10 crore, compared to Rs 2,294 crore, in Q2 September 2005.
A section of the market also expects a little increase in earnings and revenue guidance from Infosys Technologies. At the time of announcing Q1 June 2006 results, Infosys had revised upwards its earnings and revenue guidance for FY 2007 (year ending 31 March 2007). It had then projected its revenue in FY 2007 at Rs 13,350 crore to Rs 13,400 crore – a growth of 40.2 - 40.7%. It had forecast an EPS of between Rs 62.25 - Rs 62.87 for FY 2007 – a growth of 38.3% to 39.6%.
Source: Capitalmarket
