Infosys share price hits 52-week low amid growth worries
Published On: Thursday, September 22, 2022 | By: Team KnowMyStock
Shares of Infosys hit a 52-week low at Rs 1,360.15, down 1 % on the NSE in Thursday’s intra-day trade. The stock has dropped 14 percent so far in the last month and tanked almost 27% so far in 2022. amid growing concerns. Analysts peg more pain ahead for the Indian IT companies amid a likely slowdown in revenue growth of the US dollar. All eyes are on Accenture's FY23 growth outlook which will set the tone for growth expectations for the overall IT services industry. The US Fed hiked its benchmark interest rate by 75 basis points for the third consecutive time on Sept 21 and gave a hawkish outlook for future monetary tightening to curb the soaring inflation. The IT index hit an intra-day low of 26,552 and traded close to its 52-week low of 26,189 on the NSE. Global brokerage Goldman Sach downgraded its rating on Infosys from ‘Buy’ to ‘Sell’ last week, stating that it remained more optimistic on the EBIT margin estimations of Indian IT companies than their revenue prospects.
"We are in the shallow US recession camp and believe that it will lead to low-to-mid single digit dollar revenue growth for the Tier-1 Indian IT players, with Tier-2 sets growing at a high single digit rate. In our current estimates, we are not building in any pricing cuts, although we are taking a generous view on supply-side pressures in that year with attrition likely not being a big issue," said Nirmal Bang in its recent note.
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