Buy Infosys; target of Rs 1300: Motilal Oswal

What happened

Motilal Oswal reiterated a BUY rating on Infosys with a target price of Rs 1,300. Infosys reported 2QFY27 revenue of USD5.1b, up 1.2% quarter on quarter, and adjusted profit after tax of INR78b, up 0.6% quarter on quarter.

Confirmed

Global impact / market context

The target price implies about 13% upside from the current share price, which is the broker's view, not a guarantee. Revenue growth came in below the broker's estimate, so deal wins and pricing will decide whether the stock reaches that target.

Analyst inference

Infosys is an Indian IT services company. As artificial intelligence tools spread, clients may expect lower prices, which means productivity pass-through, or sharing efficiency gains with customers, could pressure revenue and profit per sale in the near term.

Analyst inference

What to watch

1. Watch whether Infosys converts its signed deals into revenue, since the broker calls deal conversion execution a key monitorable that investors should track. Confirmed
2. Watch pricing trends on existing contracts, because the broker flags productivity pass-through on the current book of business as a near-term headwind for revenue. Proposed
3. Watch growth in artificial intelligence revenue, since the broker says it keeps scaling up, which could offset weaker pricing on traditional services. Analyst inference

Evidence

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