Recent Insider Transactions • Nov 06
Board Member recently sold ₹8.5m worth of stock On the 1st of November, Venugopal Lambu sold around 3k shares on-market at roughly ₹3,416 per share. This transaction amounted to 7.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹63m more than they bought in the last 12 months. Recent Insider Transactions • Oct 29
Board Member recently sold ₹8.5m worth of stock On the 21st of October, Venugopal Lambu sold around 3k shares on-market at roughly ₹3,416 per share. This transaction amounted to 6.9% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹54m more than they bought in the last 12 months. Reported Earnings • Oct 15
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: ₹30.86 (up from ₹24.21 in 2Q 2022). Revenue: ₹34.8b (up 34% from 2Q 2022). Net income: ₹5.09b (up 28% from 2Q 2022). Profit margin: 15% (in line with 2Q 2022). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 5.1%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has increased by 66% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Sep 23
Insider recently sold ₹781k worth of stock On the 16th of September, Khyati Shah sold around 250 shares on-market at roughly ₹3,122 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth ₹4.6m. Insiders have been net sellers, collectively disposing of ₹58m more than they bought in the last 12 months. Recent Insider Transactions • Aug 25
General Counsel recently sold ₹4.6m worth of stock On the 18th of August, Sonal Basu sold around 1k shares on-market at roughly ₹3,508 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹91m more than they bought in the last 12 months. Recent Insider Transactions • Jul 27
Insider recently sold ₹3.1m worth of stock On the 21st of July, Subramanyam Putrevu sold around 1k shares on-market at roughly ₹3,088 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹83m more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improved over the past week After last week's 15% share price gain to ₹3,214, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 25x in the IT industry in India. Total returns to shareholders of 381% over the past three years. Price Target Changed • Jul 15
Price target decreased to ₹3,427 Down from ₹3,686, the current price target is an average from 34 analysts. New target price is 21% above last closing price of ₹2,829. Stock is up 3.4% over the past year. The company is forecast to post earnings per share of ₹117 for next year compared to ₹100 last year. Price Target Changed • Jul 06
Price target decreased to ₹3,697 Down from ₹3,997, the current price target is an average from 30 analysts. New target price is 29% above last closing price of ₹2,861. Stock is up 12% over the past year. The company is forecast to post earnings per share of ₹115 for next year compared to ₹100 last year. Upcoming Dividend • Jun 28
Upcoming dividend of ₹27.00 per share Eligible shareholders must have bought the stock before 05 July 2022. Payment date: 29 July 2022. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Indian dividend payers (1.9%). Lower than average of industry peers (1.8%). Reported Earnings • Jun 19
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: ₹100 (up from ₹67.44 in FY 2021). Revenue: ₹105.3b (up 32% from FY 2021). Net income: ₹16.5b (up 49% from FY 2021). Profit margin: 16% (up from 14% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.6%. Over the next year, revenue is forecast to grow 22%, compared to a 15% growth forecast for the industry in India. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • May 25
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be ₹3,460, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 35%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings is also forecast to grow by 12% per annum over the same time period. Board Change • Apr 27
High number of new directors There are 7 new directors who have joined the board in the last 3 years. Additional Executive Director & President of Global Markets Venu Lambu was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 19
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: ₹100 (up from ₹67.44 in FY 2021). Revenue: ₹108.3b (up 36% from FY 2021). Net income: ₹16.5b (up 49% from FY 2021). Profit margin: 15% (up from 14% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.1%. Over the next year, revenue is forecast to grow 18%, compared to a 16% growth forecast for the industry in India. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 59% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Mar 11
Chief Business Officer recently sold ₹9.9m worth of stock On the 9th of March, Vijayaram Parupudi sold around 2k shares on-market at roughly ₹4,120 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹90m more than they bought in the last 12 months. Recent Insider Transactions • Mar 05
Insider recently sold ₹7.8m worth of stock On the 28th of February, Suresh Gurumurthy sold around 2k shares on-market at roughly ₹3,882 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹80m more than they bought in the last 12 months. Recent Insider Transactions • Feb 24
Insider recently sold ₹3.9m worth of stock On the 21st of February, Suresh Gurumurthy sold around 1k shares on-market at roughly ₹3,863 per share. In the last 3 months, they made an even bigger sale worth ₹4.7m. Insiders have been net sellers, collectively disposing of ₹72m more than they bought in the last 12 months. Reported Earnings • Jan 14
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: ₹26.55 (up from ₹19.82 in 3Q 2021). Revenue: ₹28.2b (up 39% from 3Q 2021). Net income: ₹4.38b (up 34% from 3Q 2021). Profit margin: 16% (in line with 3Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.0%. Earnings per share (EPS) surpassed analyst estimates by 6.0%. Over the next year, revenue is forecast to grow 22%, compared to a 16% growth forecast for the industry in India. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 72% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jan 14
Price target increased to ₹4,550 Up from ₹4,224, the current price target is an average from 30 analysts. New target price is approximately in line with last closing price of ₹4,548. Stock is up 168% over the past year. The company is forecast to post earnings per share of ₹97.64 for next year compared to ₹67.44 last year. Recent Insider Transactions • Dec 10
Insider recently sold ₹4.6m worth of stock On the 8th of December, Suresh Gurumurthy sold around 1k shares on-market at roughly ₹4,620 per share. In the last 3 months, they made an even bigger sale worth ₹27m. Insiders have been net sellers, collectively disposing of ₹79m more than they bought in the last 12 months. Recent Insider Transactions • Nov 26
Insider recently sold ₹2.4m worth of stock On the 24th of November, Suresh Gurumurthy sold around 500 shares on-market at roughly ₹4,837 per share. In the last 3 months, they made an even bigger sale worth ₹27m. Insiders have been net sellers, collectively disposing of ₹224m more than they bought in the last 12 months. Recent Insider Transactions • Oct 22
Insider recently sold ₹16m worth of stock On the 20th of October, Sonal Basu sold around 3k shares on-market at roughly ₹4,754 per share. In the last 3 months, there was an even bigger sale from another insider worth ₹27m. Insiders have been net sellers, collectively disposing of ₹230m more than they bought in the last 12 months. Reported Earnings • Oct 14
Second quarter 2022 earnings released: EPS ₹24.21 (vs ₹15.41 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: ₹26.6b (up 38% from 2Q 2021). Net income: ₹3.99b (up 57% from 2Q 2021). Profit margin: 15% (up from 13% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 65% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Oct 06
Price target increased to ₹3,141 Up from ₹2,768, the current price target is an average from 26 analysts. New target price is 25% below last closing price of ₹4,173. Stock is up 201% over the past year. Price Target Changed • Oct 01
Price target increased to ₹2,807 Up from ₹2,608, the current price target is an average from 27 analysts. New target price is 33% below last closing price of ₹4,200. Stock is up 214% over the past year. Recent Insider Transactions • Sep 25
Insider recently sold ₹27m worth of stock On the 21st of September, Suresh Gurumurthy sold around 7k shares on-market at roughly ₹4,181 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹214m more than they bought in the last 12 months. Price Target Changed • Sep 24
Price target increased to ₹2,738 Up from ₹2,527, the current price target is an average from 27 analysts. New target price is 40% below last closing price of ₹4,601. Stock is up 263% over the past year. Recent Insider Transactions • Sep 08
Insider recently sold ₹1.9m worth of stock On the 6th of September, Madhup Jain sold around 500 shares on-market at roughly ₹3,820 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹2.1b more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improved over the past week After last week's 20% share price gain to ₹3,501, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 32x in the IT industry in India. Total returns to shareholders of 256% over the past three years. Recent Insider Transactions • Aug 03
Insider recently bought ₹1.2m worth of stock On the 30th of July, Ramaswamy Govindan bought around 400 shares on-market at roughly ₹2,922 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold ₹5.9b more in shares than they bought in the last 12 months. Price Target Changed • Jul 15
Price target increased to ₹2,364 Up from ₹2,162, the current price target is an average from 26 analysts. New target price is 13% below last closing price of ₹2,732. Stock is up 171% over the past year. Reported Earnings • Jul 14
First quarter 2022 earnings released: EPS ₹20.85 (vs ₹12.94 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: ₹23.6b (up 24% from 1Q 2021). Net income: ₹3.43b (up 61% from 1Q 2021). Profit margin: 14% (up from 11% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jun 29
Upcoming dividend of ₹17.50 per share Eligible shareholders must have bought the stock before 05 July 2021. Payment date: 31 July 2021. Trailing yield: 1.0%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (1.2%). Reported Earnings • Jun 23
Full year 2021 earnings released: EPS ₹67.44 (vs ₹38.36 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: ₹79.7b (up 2.6% from FY 2020). Net income: ₹11.1b (up 76% from FY 2020). Profit margin: 14% (up from 8.1% in FY 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Apr 24
Price target increased to ₹1,925 Up from ₹1,775, the current price target is an average from 25 analysts. New target price is approximately in line with last closing price of ₹2,018. Stock is up 159% over the past year. Reported Earnings • Apr 21
Full year 2021 earnings released: EPS ₹67.44 (vs ₹38.36 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: ₹79.7b (up 2.6% from FY 2020). Net income: ₹11.1b (up 76% from FY 2020). Profit margin: 14% (up from 8.1% in FY 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Apr 17
Consensus EPS estimates increase to ₹82.39 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from ₹90.6b to ₹93.1b. EPS estimate increased from ₹74.51 to ₹82.39 per share. Net income forecast to grow 19% next year vs 23% growth forecast for IT industry in India. Consensus price target broadly unchanged at ₹1,775. Share price fell 7.1% to ₹2,070 over the past week. Recent Insider Transactions • Mar 31
Lead Independent Director recently sold ₹40m worth of stock On the 26th of March, Apurva Purohit sold around 2m shares on-market at roughly ₹23.42 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹9.8b more than they bought in the last 12 months. Is New 90 Day High Low • Mar 09
New 90-day high: ₹1,796 The company is up 23% from its price of ₹1,456 on 09 December 2020. The Indian market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 15% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₹516 per share. Recent Insider Transactions • Feb 27
Insider recently bought ₹159k worth of stock On the 23rd of February, Vinit Teredesai bought around 100 shares on-market at roughly ₹1,587 per share. In the last 3 months, there was an even bigger purchase from another insider worth ₹2.0m. Despite this recent purchase, insiders have collectively sold ₹9.8b more in shares than they bought in the last 12 months. Recent Insider Transactions • Jan 31
Insider recently bought ₹2.5m worth of stock On the 22nd of January, Ramaswamy Govindan bought around 1k shares on-market at roughly ₹1,789 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold ₹12b more in shares than they bought in the last 12 months. Major Estimate Revision • Jan 25
Analysts update estimates The 2021 consensus earning per share (EPS) estimate increased from ₹58.63 to ₹66.45. Revenue estimate for the same period was approximately flat at ₹79.6b. Net income is expected to grow by 17% next year compared to 17% growth forecast for the IT industry in India. The consensus price target increased from ₹1,483 to ₹1,652. Share price is up 4.6% to ₹1,741 over the past week. Analyst Estimate Surprise Post Earnings • Jan 21
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Over the next year, revenue is forecast to grow 11%, compared to a 12% growth forecast for the IT industry in India. Reported Earnings • Jan 19
Third quarter 2021 earnings released: EPS ₹19.82 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ₹20.9b (up 6.1% from 3Q 2020). Net income: ₹3.27b (up 66% from 3Q 2020). Profit margin: 16% (up from 10.0% in 3Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jan 19
Price target raised to ₹1,612 Up from ₹1,483, the current price target is an average from 25 analysts. The new target price is close to the current share price of ₹1,682. As of last close, the stock is up 87% over the past year. Is New 90 Day High Low • Jan 08
New 90-day high: ₹1,740 The company is up 16% from its price of ₹1,504 on 09 October 2020. The Indian market is up 20% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₹494 per share. Recent Insider Transactions • Dec 27
Vice President recently sold ₹8.0m worth of stock On the 23rd of December, Prashant Mehra sold around 5k shares on-market at roughly ₹1,600 per share. In the last 3 months, there was an even bigger sale from another insider worth ₹49m. Insiders have been net sellers, collectively disposing of ₹12b more than they bought in the last 12 months. Is New 90 Day High Low • Dec 23
New 90-day high: ₹1,596 The company is up 28% from its price of ₹1,248 on 24 September 2020. The Indian market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₹469 per share. Recent Insider Transactions • Dec 09
Insider recently sold ₹14m worth of stock On the 4th of December, Krishnakumar Natarajan sold around 10k shares on-market at roughly ₹1,442 per share. In the last 3 months, they made an even bigger sale worth ₹2.1b. Insiders have been net sellers, collectively disposing of ₹12b more than they bought in the last 12 months. Recent Insider Transactions • Nov 28
Insider recently sold ₹8.0m worth of stock On the 24th of November, Krishnakumar Natarajan sold around 6k shares on-market at roughly ₹1,422 per share. In the last 3 months, they made an even bigger sale worth ₹2.1b. Insiders have been net sellers, collectively disposing of ₹12b more than they bought in the last 12 months. Upcoming Dividend • Oct 19
Upcoming Dividend of ₹7.50 Per Share Will be paid on the 11th of November to those who are registered shareholders by the 26th of October. The trailing yield of 1.3% is below the top quartile of Indian dividend payers (2.3%), but is in line with industry peers (1.3%). Analyst Estimate Surprise Post Earnings • Oct 16
Second-quarter earnings released: Earnings beat expectations, revenue disappoints Second-quarter revenue missed analyst estimates by 1.2% at ₹19.3b. Earnings per share (EPS) exceeded analyst estimates by 8.3% at ₹15.40. Revenue is forecast to grow 6.3% over the next year, compared to a 7.5% growth forecast for the IT industry in India. Reported Earnings • Oct 16
First half earnings released Over the last 12 months the company has reported total profits of ₹8.70b, up 41% from the prior year. Total revenue was ₹78.7b over the last 12 months, up 6.7% from the prior year. Valuation Update With 7 Day Price Move • Oct 12
Market bids up stock over the past week After last week's 16% share price gain to ₹1,562, the stock is trading at a trailing P/E ratio of 34.2x, up from the previous P/E ratio of 29.6x. This compares to an average P/E of 18x in the IT industry in India. Total returns to shareholders over the past three years are 238%. Price Target Changed • Oct 07
Price target raised to ₹1,159 Up from ₹1,061, the current price target is an average from 27 analysts. The new target price is 17% below the current share price of ₹1,388. As of last close, the stock is up 92% over the past year. Is New 90 Day High Low • Oct 05
New 90-day high: ₹1,349 The company is up 37% from its price of ₹982 on 07 July 2020. The Indian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₹434 per share. Price Target Changed • Sep 24
Price target raised to ₹1,059 Up from ₹979, the current price target is an average from 26 analysts. The new target price is 15% below the current share price of ₹1,248. As of last close, the stock is up 79% over the past year. 