INFOSYS TARGET Rs 1836 , EMKAY GLOBAL FINANCIAL SERVICE MAINTAINS A HOLD..!!

HOLD THE INFY STOCKS..DONT SELL IN PRESSURE...IT WILL LAY GOLDEN EGGS SOOOOON.

Emkay Global Financial Service has maintained its hold rating on Infosys Technologies with a target price of Rs 1836 in its July 11, 2008 research report. "Infosys Technologies reported USD revenues of USD 1155 million (+1.1% QoQ), Rs 48.5 billion (+6.9% QoQ) slightly ahead of expectations. EBITDA margins were down 207 bps QoQ to 30.5% while net profits at Rs 13.02 billion were ahead of expectations aided by one time tax write back of Rs 310 million."
"We have changed our FY09 and FY10 earnings estimates by 10% and 14.8% respectively to reflect weaker currency (our FY09 estimates now based at Rs 42/USD and FY10 estimates based at Rs 41/USD, FY10 estimates factor in lower tax rates to account for STPI extension). We highlight that Infosys offers 17.5% EPS CAGR over FY08-11E (20.2% over FY08-10E) and with valuations at 15x FY10 earnings might already be factoring in most of the currency upside. Besides we note that Infosys lacks immediate upside triggers in the near term (albeit for a further weakening of currency) given that demand environment remains largely unchanged with a further retest of the demand now shifted to the Septemebr’08 results. (supported by Infosys’s cautious commentary and lack of any upgrade in USD revenue guidance). We maintain ‘HOLD’ with a price target of Rs 1836, however would be any buyers on any significant pullback in the stock price going forward," says Emkay's research report.