STREET EXPECTS INFOSYS TO BEAT ESTIMATES!

WHAT DOES THE STREET EXPECT FROM INFOSYS

According to CNBC-TV18 estimates, Infy’s net profit is expected to go down 3.2% to Rs 1,490.1 crore as against Rs 1,540 crore in the previous quarter.

During its results last quarter, Infy said it was targeting, or ‘guiding’, net profit of Rs 1,338–Rs 1,350 crore.

Infosys’ revenues are seen going up 0.2% at Rs 5,596.8 crore this versus Rs 5,585 crore in the previous while the company’s guidance was at Rs 5,429-5,476 crore.EBIDTA (earning before interest, depreciation, tax and amortisation) is likely to go down 3.7% to Rs 1,860.5 crore versus Rs 1,933 crore. 

Margins are seen declining at 33.2% versus 34.6%.

Earning per share (EPS) is seen at Rs 25.99 as against guidance of Rs 23.35-23.56.

Any major deviation in the above figures will lead the markets for the extreme short term.Keep a close watch!

A MIDCAP TRADING PICK FOR THE SHORT TERM.

EMCO TRANSFORMERS LTD

FUNDAMENTAL VIEW 

EMCO is a leading player in Indian Transformer and Power ancillary segment. Company is expanding to other geographies, besides foraying into Coal business. It is likely to show an EPS of Rs.11.5 in FY10. At CMP Rs.100, it trades at 8.6 forward PE on FY10 estimates. Investors may BUY at CMP Rs.100, for a target of Rs.115 i.e. 10 PE of FY 10 estimates

TECHNICAL VIEW 

BUY EMCO  around 100-102 with a stop loss of 95 for a target of 115/120 in the extreme short term.

Have a great trading day,

Regards,

Rahul T