IIFL Call on Infosys Ltd and DCB Bank

IIFL Call on Infosys Ltd and DCB Bank

Infosys Ltd. (Q3 FY16): Positive growth momentum continues - BUY
CMP Rs1,129, 1-yr Target Rs1,350, Upside 19.6%

• Revenue growth beat, yet again
• Deal wins momentum remains strong
• FY16 growth guidance upgraded; confident of achieving industry leading growth in FY17
• EBIT margin contraction was higher than expectation; margin band to improve in the longer term
• Set to deliver industry-best earnings CAGR over FY16-18; Upgrade rating to BUY

Click here for the detailed report on the same.


DCB Bank (Q3 FY16): Strong performance, valuation comforting - Accumulate
CMP Rs79, 1-yr Target Rs88, Upside 11.5%

• Strong NII growth backed by continued traction in advances book
• Advances growth continues to be healthy; share of corporate banking has reduced
• The revised branch addition strategy will spread out costs and put less pressure on C/I ratio
• Asset quality remains stable
• NIMs rise sharply in Q3 FY16; expect NIMs to correct over the medium term
• Valuation captures the impact of new strategy; upgrade rating to Accumulate

Click here for the detailed report on the same.

*IIFL Call on Infosys Ltd and DCB Bank as suggested by Amar Ambani Head of Research, IIFL