Infosys, one of India’s leading IT companies, recently released its Q4 earnings report, which disappointed investors. The company’s revenue fell short of expectations, leading to a drop in stock prices. In this article, we will analyze the Q4 earnings report and provide insights into whether you should buy, sell, or hold Infosys stocks.
1Infosys Q4 Earnings Analysis:
In the Q4 earnings report, Infosys reported a revenue of $3.65 billion, a 2.8% increase compared to the same period last year. However, the revenue fell short of analysts’ expectations, leading to a 4% drop in the stock price.
The company’s net profit for the quarter was $697 million, a 17.5% increase compared to the same period last year. The increase in net profit was mainly due to a decline in the effective tax rate.
Infosys’ digital revenues also saw an increase of 42.8% compared to the same period last year. The company’s digital revenue now contributes to 52.9% of its overall revenue.
2Should you Buy, Sell, or Hold Infosys Stocks?
Based on our analysis of Infosys’ Q4 earnings report, we recommend holding on to Infosys stocks. Although the revenue fell short of expectations, the company’s net profit increased by 17.5%, which is a positive sign. Moreover, Infosys’ digital revenue is growing steadily, contributing to more than half of its overall revenue.
However, if you are looking to buy Infosys stocks, we recommend waiting for a dip in the stock price. The current price of the stock is overvalued, and buying at this price may not provide significant returns in the short term.
On the other hand, if you already hold Infosys stocks, we recommend holding on to them as the company’s fundamentals remain strong, and its long-term growth prospects look promising.
In conclusion, Infosys’ Q4 earnings report may have disappointed investors, but the company’s net profit increased, and its digital revenue is growing steadily. We recommend holding on to Infosys stocks, but if you are looking to buy, wait for a dip in the stock price. As always, it is essential to do your own research and consult with a financial advisor before making any investment decisions.