You are here:HomeCorporates

Rupee depreciation a boost for Infosys: Morgan Stanley

close

New Delhi:

Leading brokerage firm Morgan Stanley has come out with an overweight call on IT major Infosys with a target of Rs 3,630.

 

The rupee depreciation will cushion margins and earnings and there is a high probability of strong absolute returns in 2012, Morgan Stanley said today. Infosys may beat Street FY13 rupee earnings per share (EPS) forecasts with flat US dollar revenues, the firm added.

 

Export based firms, like IT, will benefit from currency depreciation though most major firms hedge their positions for cross currency movements. The Indian rupee has fallen over 18 per cent from its year-high in July and is now trading at all-time lows.

 

Infosys may factor in cross currency impact and raise its rupee earnings guidance. It could also tinker with its revenue guidance, analysts at the firm added.

 

Infosys has not witnessed material price cuts or project cancellations because of the slowdown in Europe and the US, which adds to the optimism that the stock would do well in future.

 

Most other brokerage firms have a buy or hold rating on Infosys. While Nomura recommends a buy with a target of Rs 3,100, Standard Chartered Bank has a hold rating with a target of Rs 2,700.

Story first published on: December 14, 2011 15:16 (IST)

MORE FROM NDTV

FROM THE WEB

MORE FROM THE WEB
MORE FROM NDTV

For Profit Update,
Follow NDTV on Pinterest

Post your comments:

Social Sharing

Advertisement

Advertisement

 

More From NDTV

More From the WEB

  • NSE
  • BSE
Company Price (Rs.) CHG %
RALLIS 180.20 8.36%
MOTHERSUMI 263.65 5.14%
BATAINDIA 1,094.85 3.72%
EICHERMOT 6,285.90 3.61%
More from Top Gainers »
Don't Miss

Advertisement

Market Data provided by © Accord Fintech.
© Copyright NDTV Convergence Limited 2014. All rights reserved.