Infosys hits record high, becomes third most valuable company

Since Sept 8, the stock has rallied 11% after the US government found no visa violations by IT major

Infosys has become the third most-valuable company as market capitalization soaring to over Rs 2.70 lakh crore as its shares price hit a record high on the Bombay Stock Exchange (BSE).

India’s second-largest information technology (IT) company toppled the private banking major HDFC Bank as the country’s third most valued company with its market capitalisation of Rs 2.71 lakh crore, driven by a spurt in share price.

Tata Consultancy Services (TCS) and Reliance Industries with market capitalization of Rs 5.17 lakh crore and Rs 2.80 lakh crore, respectively, remained the top two most valued companies, according to the data available with BSE at 12:45 pm. HDFC Bank m-cap stands at Rs 2.70 lakh crore, data shows.

Shares of Infosys were trading higher by 1.5% at Rs 1,178, after hitting a lifetime high of Rs 1,197 on the BSE in early morning trade. It has outperformed the market by gaining 18% thus far in 2015 as compared to 5% decline in the Sensex.

Since September 8, the stock rallied 11% from Rs 1,059 after the US government has found no visa violations by IT major.

Shashi Bhusan and Hussain Kagzi analysts at Prabhudas Lilladher retain ‘buy’ rating on the stock with target price of Rs 1,340.

Infosys Q1FY16 (April-June) was one of the strongest beat to consensus expectation since GFC (Great Financial Crisis). We believe stable management, crystal vision, and smooth execution of Infosys has put the company in early revenue upgrade cycle, analysts said in a report dated August 4, 2015.

Moreover, in our opinion weak performance by other technology majors in Asia Pacific put Infosys into the sweet?spot wherein Fund Managers (FMs) would rush?in with their Technology investment towards Infosys. We see a case of strong outperformance for Infosys as funds chase accelerated revenue growth, added report.

Infosys is schedule to announce its Q2FY16 (July-September) quarter results on October 12, 2015.