Emkay Global Financial Sets Target Price of Rs 1450 for Infosys

Emkay Global Financial Research Report: Infosys

Key Highlights

• Infosys has signed definitive agreements to acquire Optimum Healthcare IT and Stratus Global LLC, with a combined cash consideration of approximately $560 million.
• The transactions strengthen Infosys' verticalized consulting and digital transformation capabilities across provider-side healthcare IT and P&C insurance platforms.

Acquisition Details

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• Optimum Healthcare IT acquisition is valued at up to $465 million, approximately 1.7x Price-to-Sales (P/S).
• Stratus Global LLC acquisition is valued at up to $95 million, approximately 2.2x P/S.
• The acquisitions add approximately 2,000 professionals, expanding Infosys' presence across high-value buying centers and enhancing its positioning in regulated, high-complexity industries.

Impact on Business

• The acquisitions are expected to add approximately 1.6% of revenue run rate, with Optimum Healthcare IT adding approximately 21% to the existing Healthcare and Life Sciences (HLS) practice.
• The deals are aligned with Infosys' strategy of driving AI-led, industry-specific transformation, moving beyond horizontal capabilities toward embedded, workflow-centric execution.

Outlook

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• Emkay Global Financial has not yet factored these acquisitions into its estimates, pending deal closure.
• Recommendation: BUY with a Target Price (TP) of Rs1,450, at 18x March 2028 Estimated Earnings Per Share (EPS).