Infosys shares can rise 29%, Kotak says, highlighting three key factors from CEO Salil Parekh

It cited the three key points Infosys CEO Salil Parekh mentioned during his meeting:

AI readiness

Infosys is the AI partner of choice for 10 of its top 20 clients in the financial services vertical and hopes to benefit from the consolidation initiatives of many of those clients, according to its MD & CEO Salil Parekh.

Early focus on Project Maximus

Parekh said early focus on Project Maximus, to improve margins, provides room to participate in cost takeout deals.
Kotak said competitive intensity is elevated with pricing pressure in a few pockets, given the cost optimisation priorities of clients. It added that most productivity benefits from AI adoption may get passed on to clients in the current demand environment.

M&A

Acquisitions would primarily be aimed at greater participation in growth areas.The brokerage said acquisitions in the calendar year align with priorities such as cybersecurity, energy and utilities (E&U) consulting and cloud services in the Australia and New Zealand (ANZ) region.

The brokerage said Infosys trades at 20 times its FY27 earnings-per-share estimates.

Infosys shares were up 3.2% at ₹1,486 apiece around 12.30 pm on Wednesday. The stock has declined 21% this year, so far.

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