Infosys Shares Experience 9% Drop Amidst FY24 Guidance Downgrade; Analysts Foresee Further Decline.


Infosys, a leading IT giant, has witnessed a significant 9% decline in its share price as a series of brokerages slashed their share price targets following a downward revision in FY24 revenue guidance. Despite a robust 19% increase from its April lows, the stock is now trading at 22 times one-year forward PE, close to its five-year average. Analysts predict that the stock could face additional pressure in the near term until clarity emerges on revenue growth revival.

Reasons for Share Price Decline:

The sudden sharp cut in revenue growth guidance for 1QFY24 came as a surprise to many, considering Infosys' top position in the industry and its consistent growth trajectory. The revision cited lower-than-expected volumes and discretionary spending, decision-making delays, and postponement of anticipated mega deals as contributing factors.

Analysts' Views:

1. Philip Capital: The brokerage downgraded Infosys from BUY to Neutral due to the recent stock rally and the uncertainties surrounding revenue growth. Until clarity emerges, the stock is expected to remain under pressure.

2. Kotak Institutional Equities: Analysts noted that while the revenue growth cut is unexpected, there is no indication of a loss in competitiveness or market share. Nevertheless, they lowered revenue and EPS estimates, factoring in reduced growth and slight margin adjustments.

3. Nomura India: The brokerage believes that Infosys may underperform the industry's growth in FY24. As a result, they downgraded the stock to 'Reduce' with a target price of Rs 1,210 from the previous Rs 1,450.

4. Macquarie: The stock received an 'Underperform' rating with a target of Rs 1,130, indicating a bearish outlook on its performance.

5. BofA Securities: The brokerage set the stock's target price at Rs 1,390, suggesting potential upside despite the recent decline.

Future Outlook:

As the market awaits more clarity on revenue growth revival, Infosys' shares may continue to experience pressure in the near term. Investors are cautioned to closely monitor the situation and consider the various analyst recommendations before making any investment decisions.


Infosys, a prominent player in the IT industry, saw its shares plummet 9% due to a revised FY24 revenue guidance. The unexpected cut has prompted several brokerages to downgrade the stock and lower revenue and EPS estimates. As uncertainties persist, investors are advised to exercise caution and analyze expert opinions to navigate the current market conditions.

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