Infosys -Accumulate- Angel Broking
Infosys Technologies, Cognizant Technology Solutions and UST Global have bagged multi-yearcontracts worth over $600 million (around Rs2,750 crore) from Wal-Mart. With this,the three companies have entered Wal-Mart’s list of preferred vendors.
The amount is roughly equivalent to the value of goods — textiles, handicrafts and other products — that the world’s largest retailer sources from India every year.According to the contract, Infosys and Cognizant will be responsible for application development and support, while UST Global will be responsible for specific testing of these applications.
Initially, the three vendors are expected toearn Rs250 crore to Rs300 crore each annually. The figure is set to grow as Wal-Martincreases the outsourcing of work from its main merchandising division. Infosysand Cognizant are expected to garner a larger share of the pie between them. Wemaintain an ACCUMULATE on Infosys, with a target price of Rs2,475.
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