Infosys shares hit record high post Q2 beat, market cap touches Rs 5 lakh crore

New Delhi, 15-Oct-2020

Infosys, India's third largest outsourcer, today became the fifth Indian company to hit a market capitalisation of over Rs 5 lakh crore after its shares touched a record high of Rs 1,186, rising as much as 4.3% over its previous closing price. At the day's highest point, Infosys market capitalisation touched Rs 5.04 lakh crore. Worth mentioning here is that Infosys shares have rallied over 60% in this year so far. As of 11:15 am, Infy shares traded off their intrday highs at Rs 1,109, down 2.30% compared to yesterday's price. Analysts say the momentum in Infosys shares is likely to continue as the outsourcer has outperformed both TCS and Wipro in Q2. Infosys' Q2 revenue rose 3.2% year-on-year to $ 3,312 million while both TCS and Wipro reported decline in Q2 revenue on annual basis. In addition, Infosys revised the revenue and margin guidance for FY21 while reporting a sustained deal flow. This coupled with a 50% year-on-year jump in the dividend at Rs 12 per share should be able to support the stock, say analysts. Among the three, Infosys has shown a better demand traction over the past two quarters on the basis of the trailing 12-month revenue. In each of the two quarters to September 2020, it reported higher year-on-year incremental revenue than TCS and Wipro. The latter two recorded a drop in the September quarter. The company revised its FY21 constant currency dollar revenue guidance to 2-3% growth from earlier 0-2% growth and expanded the target operating margin band to 23-24% from 21-23%.