Infosys Q3 Results: Morgan Stanley maintains Overweight call with target price of Rs 2,150

Morgan Stanley maintains its Overweight rating on Infosys with a target price of ₹2,150, driven by improving deal wins and constructive commentary on discretionary spending. The brokerage believes Infosys’ net headcount addition in Q3 indicates a reasonable acceleration in revenue growth going forward.

Morgan Stanley highlights that Infosys’ free cash flow to net income ratio was among the strongest in several years, further supporting its valuation. The stock is expected to find support around its five-year average two-year forward FCF multiple of 24.2x.

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Infosys Q3FY25 Performance:

  • Net Profit: ₹6,806 crore (+4.6% QoQ)
  • Revenue: ₹41,764 crore (+2% QoQ)
  • EBIT: ₹8,912 crore (+3% QoQ), Margin: 21.3% vs. 21.1% QoQ
  • FY25 revenue guidance raised to 4.5–5% from 3.75–4.5%.