Why ULIP mis-selling has become rampant ?
Why is there so much mis-selling of ULIP? How to avoid this mis-selling? Who should take ULIP?
IT major Infosys appears to have turned out to be one of the beneficiaries of the pandemic with the focus on reinventing the business to become a digital-first company. This is also visible from over 130% return delivered by the company since March lows. In fact, Infosys has managed to change the fortunes of its investors in the long run. Shares of the company have soared 2,153% to an adjusted price of Rs 1,411 on April 6, 2021 from Rs 62.64 on April 6, 2001.
The movement in share price shows that an investment of Rs 1 lakh in Infosys in April 2001 would have now grown to over Rs 22.52 lakh.
In a media meet in December, Infosys CEO Salil Parekh said that the company is hoping to achieve more than 50% of its revenues from digital services on the back of huge demand from the enterprises for hybrid cloud, cyber security and remote work services. Analysts are further bullish on Infosys ahead of its March quarter financial results, which is scheduled to announce on April 14.
The company had earlier posted a 16.6% rise in consolidated net profit at Rs 5,197 crore for the December 2020 quarter and increased its revenue growth guidance for FY21 to 4.5-5% on the back of large project wins and a strong deal pipeline.
After surprising the street with the robust sequential performance in Q3, domestic IT companies are expected to continue their strong sequential revenue growth momentum in a seasonally weak March quarter. Commenting on the upcoming quarterly results of IT majors, brokerage KR Choksey said, “We expect TCS and Infosys to outperform on revenue growth among the top-tier IT pack, with 4.2% and 3.8% QoQ constant currency (CC) revenue growth, respectively, led by continuing deal ramp-ups as they leverage their industry leadership.” KR Choksey has a ‘Buy’ call on Infosys with a price target of Rs 1,675. Shares of the company scaled their fresh record high of Rs 1,434.50 on April 7.
Likewise, Sharkhan also has a ‘Buy’ rating on Infosys with a price target of Rs 1,650. The brokerage said the company is likely to post 13.90% YoY and 2.2% QoQ growth in net sales in Q3FY21. On the other hand, it sees 18.70% YoY growth in net profit and 1.30% QoQ de-growth in the bottom line.
The brokerage added that Infosys could provide revenue growth guidance of 12-14% for FY2022E, while it would give its margin guidance of 22-24%.