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