IT services major Infosys on Tuesday became the fourth Indian company to hit the $100-billion market capitalisation mark.
The other companies are Reliance Industries ($140 billion), Tata Consultancy Services ($115 billion) and HDFC Bank ($100.1 billion).
The shares of Infosys rose 1 per cent to hit ₹1,755.6 intra-day, pushing the company’s market cap to the $100-billion mark. At the end of the day’s trading, Infosys shares were at ₹1,721.5 apiece, nearly 1 per cent higher than Monday closing.
“This is a very significant milestone not only for Infosys but also for the domestic IT sector,” Suyog Kulkarni, an IT analyst with Reliance Securities, told BusinessLine. He said that after Salil Parekh took over as the CEO, Infosys has seen consistent growth.
“The CEO’s focus on increasing investments in digital technology and having a diversified portfolio has increased the client outreach. We expect Infosys to have superior revenue growth over the next two-three years. We expect Infosys market-cap to reach $110 billion by FY24,” Kulkarni said.
The Indian IT industry accounts for about 8 per cent of GDP, contributes to over half of services exports and 50 per cent of the foreign direct investment.
Showing real growth
In a note to investors, ICICI Securities said Infosys has been one of the very few companies in the industry reporting an actual improvement in the underlying demand — and not a mere cyclical recovery from a low base. Its consistent performance has continued with organic growth of 4.8 per cent QoQ (CC) — the company’s best-ever June quarter in more than a decade. The quality of growth was healthy and broad-based, across verticals and geographies.
During the first quarter of FY22, Infosys raised its constant-currency revenue growth estimate to 14-16 per cent for the current fiscal from 12- 14 per cent, while maintaining the margin guidance at 22-24 per cent. The Hindu BusinessLine