Infosys shares jump ahead of Q2 results today. Is this a stock to buy today?

Stock market today: Infosys shares witnessed buying interest during the early morning session on Thursday as the company board set a meeting to consider and approve Q2 results 2024 today. Infosys's share price today opened with an upside gap at ₹1,935.20 apiece on the NSE and touched an intraday high of ₹1,958.35 per share within a few minutes of the Opening Bell, recording an intraday high of around 2 per cent.

According to stock market experts, Infosys is expected to report strong revenue growth and strong fundamental guidance. They advised investors to maintain a buy-on-dips strategy for the near-term target of ₹2,050 apiece. However, they advised strict stop loss at ₹1,910 while taking any fresh position in the Indian IT major.

Infosys Q2 results 2024 Preview

Speaking on Infosys Q2 results 2024, Anshul Jain, Head of Research at Lakshmishree Investment & Securities, said, "As Infosys prepares to announce its Q2 results, there is anticipation that the company may revise its FY24 revenue growth guidance upward. In July, Infosys raised its growth forecast to 3-4%, up from 1-3%, following a robust Q1 performance that saw 3.6% sequential revenue growth, surpassing analyst expectations. A further upgrade is possible, given that Q2 revenue is expected to have risen by around 3%. If the guidance remains unchanged, it could signal a more cautious outlook, which may not sit well with the market."

"In Q1, Infosys exceeded projections with ₹39,315 crore in revenue and delivered an EBIT margin of 21.1%, an improvement of 100 basis points from the previous quarter. The company's margin guidance remains between 20% and 22%, reflecting its strong operational discipline. With consistent performance and strong fundamentals, all eyes are on Infosys to see if it will boost its growth outlook for the rest of the fiscal year," Anshul Jain said.

Expecting a healthy Infosys Q2 results 2024, Sagar Shetty, Research Analyst at StoxBox, said, “Infosys is largely expected to report a healthy financial performance for Q2FY25. We expect steady revenue growth, largely due to large deal ramp-ups and a healthy recovery in the BFSI segment. EBIT margins are likely to expand due to In-tech acquisition and operational efficiency. We also expect management to uptick revenue growth guidance. Margins are to be within the guidance range. Commentary on demand environment, vertical outlook, TCVs & pipelines, and hiring would be key.”

According to Kotak Institutional Equities, revenue growth is likely to be led by a 90 bps contribution on in-tech acquisition, an auto-focused ERD firm, seasonal strength, residual ramp-up of mega-deals and marginally higher revenues from the sale of third-party software, after a sharp dip in June 2024 quarter.

Infosys share price target

Asked about the Infosys share price outlook, Sumeet Bagadia, Executive Director at Choice Broking, said, “Infosys shares are looking strong on chart pattern and facing hurdle at ₹1,960 apiece. We can expect the INFY share price to reach the ₹2,050 per share mark on a closing basis if we breach this hurdle. However, one must maintain a strict stop loss at ₹1,910 per share mark. On breaching below this support, Infosys shares may go down to the 1,840 apiece mark.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decision.