Infosys: Analysts keep the faith despite the disappointing Q4 show

Street expects an upward revision in growth guidance; valuation divergence with TCS to narrow

A miss on the March quarter performance and valuations weighed on the Infosys stock which shed about 3 per cent trade on Thursday. The disappointment was largely due to the high expectations built in into estimates after the consistent outperformance on growth and deal wins over the previous quarters. While constant current growth of 2 per cent in the quarter fell short of the 3-4 per cent estimate, the growth guidance of 12-14 per cent for FY22 too was a shade below what analysts had forecasted.  

Though there could be near-term pressure on the stock, the street remains bullish given