EUR 120.00 For Business Accounts Only

MOSL: Morning India (7/November/19): 1. Infosys (Business as usual); 2. Financials; 3. Real Estate; 4. Godrej Consumer; 5. Bosch; 6. Tata Steel; 7. Hindalco Inds; 8. Cipla

MOrning India (7/November/19): 1. Infosys (Business as usual); 2. Financials; 3. Real Estate; 4. Godrej Consumer; 5. Bosch; 6. Tata Steel; 7. Hindalco Inds; 8. Cipla

Today’s top research idea
Infosys: Business as usual

** We attended Infosys’ Analyst Day where Chairman Mr Nandan Nilekani spoke on the recent whistleblower letter. Apart from this, management shared the imperatives for revenue growth and margin expansion. Key highlights:

** Infosys has not received any prima facie evidence related to the whistle-blower complaint. While the investigation is yet to conclude, Board remains extremely complaint on its corporate governance policy and retains confidence on the management capability to functional in an ethical manner. Besides this, the focus remains on growth which has been led by the large deal wins (INFY has won deal TCV of USD 5.5b in 1HFY20, up 75% YoY). Margins had come down by 270bps over last 2 fiscal years with Infosys’ investments to enhance digital capability, reskilling, improve localization etc.

** We expect a CAGR (FY19-21) of 9.3% in CC revenue and 11.5% in EPS. The stock price discounts FY20/21 earnings by 20.5/17.9—25% discount to TCS (on FY21 multiples). Our price target of INR880 discounts forward earnings by 18x. Maintain Buy.

Piping hot news
Relief for stressed home buyers - cabinet opens Rs 25,000 crore window for stuck houses
The cabinet approved a Rs 25,000-crore special window to provide funding to housing projects that are stuck, with the aim of reviving the key sector, providing a boost to the economy and bringing relief to home buyers. The money will be available for “net worth positive” projects, said FM Nirmala Sitharaman. As many as 1,600 projects with 458,000 dwelling units will potentially be covered under the dispensation. The government will contribute Rs 10,000 crore and the rest will come from LIC and State Bank of India besides sovereign wealth funds and pensions funds.