Share market buying tips: Infosys Q3 results are out! Here's why you should hold the stock- Check expert's advice
Infosys Q3 results: The IT giant announced its 3rd quarter results on Friday. The company posted a drop in net profit by 30 per cent, as the profit for the December quarter remained Rs 3,610 crore against Rs 5,129 crore in the corresponding quarter last year. However, a 20 per cent jump in revenue was reported at Rs 21,400 crores from Rs 17,794 crores. Sr. Equity Fundamental Analyst Avinash Gorakssakar told Zee Business Online, "The results were in line, overall the numbers are okay. The positive things are that the company has increased its guidance and issued aa buyback at a good price."
Here's why you should remain invested in Infosys:-
1. Short-term support due to buyback:
The company has announced a buyback of Rs 8,260 crores for Rs 800 each. The second buyback was expected and it will likely to impact positively on the stock movement post results.
"The buyback date is yet to come, but there will be short term support for the stock as it is not expected to break the current levels," Gorakssakar added.
2. 4th Quarter will be watchful:
The last quarter of this financial year will have an impact on stock's pricing as the current quarter's number were parallel to the estimated results.
"January to March is generally a pickup quarter for IT companies as the December quarter remains a holiday season. Therefore, the last quarter is likely to post better results." Gorakssakar mentioned.
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3. Nothing to worry, even with a dip in net profits:
Infosys is a fundamentally strong company and the investors can remain hold on their positions. The news of buyback, special dividend are positive. A dip in net profit is due to expenses on a startup setup and rupee's appreciation in the quarter.
"Infosys is expected to witness an upside trend from here as the buyback at Rs 800 is announced. There is nothing to worry as of now." Gorakssakar explained.
Note: The experts are not associated with the above share or company. Any investments should be made on the basis of reader's discretion.
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