Last updated: 15 Jul, 2020 | 02:48 pm
Q1FY21 results were expected to be weak as it was the first full quarter that captured the impact of lockdown imposed from March 24th. However, Infosys was able to beat expectations by winning new contracts and implementing cost cuts to maintain its revenue and operational profitability. Large deal wins during the quarter stood at $1.74 billion—higher than the $1.65 billion worth of deals it won in the previous three months.
The Covid-19 pandemic has forced a tectonic shift in businesses processes to move towards greater digitization. This has helped the IT sector to bounce back faster than other industries. Infosys said that the relevance of its is resonating with its clients in these times. The growth in Q1FY21 has improved visibility for the rest of the year for Infosys.
The stock has gained about 66% from its March lows and is currently trading at a 52-week high. The shares are trading at a PE of 21.46 as compared to IT sector PE of 22.32.
Our VGQM model has a BUY rating on the stock.