 "Infosys, Wipro hit 52-week lows")
Shares of two information technology (IT) majors Infosys (Rs 994) and Wipro (Rs 454) hit their respective 52-week lows on BSE in intra-day trade on Friday.
At 11:22 am, Wipro was down 0.59% at Rs 460 and Infosys down 0.57% at Rs 1,000, as compared to 0.01% fall in the S&P BSE Sensex. Both these stocks have underperform the market post July-September (Q2FY17) results.
In past one-week, Wipro slipped 8% after the company reported disappointing Q2F17 results and a sluggish IT revenue guidance for the third quarter ending December 2016 (Q3FY17). The benchmark index was down 0.55% during the same period.
After reporting around 1% constant currency (CC) revenue growth in Q2FY17, Wipro has guided for 0%-2% quarter on quarter (QoQ) CC revenue growth for Q3FY17, including the benefit from Appirio acquisition.
Analysts at Prabhudas Lilladher however, retain ‘accumulate’ rating on the stock.
“We believe company is realigning its revenue portfolio to cater to the emerging IT spends, through both organic initiatives and acquisitions. These efforts will likely yield results in medium?term while near term revenue and margins may remain soft,” the brokerage firm said in Q2FY17 results update.
The stock of Infosys was down 2.6% against 0.95% rise in the Sensex, since October 14, after the India’s second-largest software exporter has cut its annual revenue forecast for the second time in three months.
Infosys’ new forecast is that it will grow 8% to 9% in dollar revenue, down from 10.5 to 12% it projected in July. The lower forecast indicates that Infosys will see flat revenue over the next six months, analysts said.
“The company has downgraded its USD revenue growth guidance for FY2017 to 8- 9% on CC basis. We expect the company to post around 9.0% USD revenue growth in FY2017. It aims to reach a milestone of achieving sales of US$20bn by FY2020. Also, the company plans to utilize cash properly through increased dividends and acquisitions, so that it can increase its capital efficiency,” Angel Broking said in a note, with maintain a ‘buy’ rating on the stock.
At 11:22 am, Wipro was down 0.59% at Rs 460 and Infosys down 0.57% at Rs 1,000, as compared to 0.01% fall in the S&P BSE Sensex. Both these stocks have underperform the market post July-September (Q2FY17) results.
In past one-week, Wipro slipped 8% after the company reported disappointing Q2F17 results and a sluggish IT revenue guidance for the third quarter ending December 2016 (Q3FY17). The benchmark index was down 0.55% during the same period.
After reporting around 1% constant currency (CC) revenue growth in Q2FY17, Wipro has guided for 0%-2% quarter on quarter (QoQ) CC revenue growth for Q3FY17, including the benefit from Appirio acquisition.
Analysts at Prabhudas Lilladher however, retain ‘accumulate’ rating on the stock.
“We believe company is realigning its revenue portfolio to cater to the emerging IT spends, through both organic initiatives and acquisitions. These efforts will likely yield results in medium?term while near term revenue and margins may remain soft,” the brokerage firm said in Q2FY17 results update.
The stock of Infosys was down 2.6% against 0.95% rise in the Sensex, since October 14, after the India’s second-largest software exporter has cut its annual revenue forecast for the second time in three months.
Infosys’ new forecast is that it will grow 8% to 9% in dollar revenue, down from 10.5 to 12% it projected in July. The lower forecast indicates that Infosys will see flat revenue over the next six months, analysts said.
“The company has downgraded its USD revenue growth guidance for FY2017 to 8- 9% on CC basis. We expect the company to post around 9.0% USD revenue growth in FY2017. It aims to reach a milestone of achieving sales of US$20bn by FY2020. Also, the company plans to utilize cash properly through increased dividends and acquisitions, so that it can increase its capital efficiency,” Angel Broking said in a note, with maintain a ‘buy’ rating on the stock.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%