Infosys is the second IT company in India to have achieved themilestone of having had a market of Rs 5 lakh crore, TCS being the first ITcompany.
This was achieved yesterday when investors lifted the price ofthe stock to Rs 1185 on the exchange BSE, showing a healthy gain of 4.3% fromits previous closing price. The impetus for such confidence among company’sinvestors is believed to be the company’s September quarter earnings which werebetter than the market expected.
The company went ahead and increased its annual revenuegrowth forecast.
It is believed that the company’s ability to sign lucrativedeals enabled it to perform well in this quarter.
Infosys raised its revenue growth guidance to 2-3% for theyear to 31 March from the earlier 0-2% in constant currency terms and providedmargin guidance of 23-24% versus 21-23% earlier.
The company’s report claimed, "Upward revision to FY21guidance with revenue growth is positive but still conservative", saidMotilal Oswal in a report to its investors. " We expect Infosys to deliverabove guidance in FY21 notwithstanding margin headwinds (wage hikes in 4Q,large deal ramp-up, seasonality, above margin factors, etc.) and based onstrong deal wins".
An investment advisory, Antique Broking claims that theperformance of Infosys and TCS are likely to be at par with one another. Theadvisory is confident on both the companies in the medium- to long-term future.