Current Rating and Its Significance
On 22 December 2025, MarketsMOJO revised its assessment of Infosys Ltd, moving the rating from 'Hold' to 'Buy'. This change was accompanied by a notable increase in the Mojo Score, which rose by 16 points from 54 to 70, signalling a stronger conviction in the stock’s potential. The 'Buy' rating indicates that the stock is expected to outperform the broader market over the medium to long term, supported by solid fundamentals and favourable market conditions.
Here’s How Infosys Looks Today
As of 03 January 2026, Infosys Ltd continues to demonstrate robust financial health and operational strength. The company’s market capitalisation stands at an impressive ₹6,60,708 crore, making it the second largest entity in the Computers - Software & Consulting sector, trailing only Tata Consultancy Services (TCS). Infosys accounts for 15.67% of the sector’s total market value, underscoring its significant influence and scale.
Quality Assessment
Infosys boasts an excellent quality grade, reflecting its consistent ability to generate strong returns and maintain financial discipline. The company’s average Return on Equity (ROE) is a compelling 29.25%, signalling efficient utilisation of shareholder capital. Furthermore, Infosys has maintained a low debt-to-equity ratio, averaging zero, which highlights its conservative capital structure and limited reliance on external borrowings. This financial prudence reduces risk and provides flexibility for future investments or shareholder returns.
Valuation Perspective
The stock’s valuation is currently graded as fair. Infosys trades at a Price to Book (P/B) ratio of 6.4, which is in line with its historical averages and comparable peers within the sector. While the Price to Earnings Growth (PEG) ratio stands at 3.4, indicating a premium valuation relative to earnings growth, this is balanced by the company’s steady profit growth of 4.4% over the past year. Investors should note that despite the stock’s 1-year return being negative at -16.19%, the underlying earnings growth and market position justify the current valuation level.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for Infosys is currently assessed as flat. While the company’s net sales have grown at a healthy annual rate of 12.37%, recent profit growth has been modest at 4.4% year-on-year. This steady but unspectacular growth suggests a mature business with stable cash flows rather than rapid expansion. The flat financial grade indicates that investors should temper expectations for sharp earnings acceleration in the near term, but can rely on consistent performance and resilience in a competitive sector.
Technical Outlook
From a technical standpoint, Infosys is rated as mildly bullish. The stock has shown positive momentum over the past month and quarter, with returns of +5.12% and +13.49% respectively, despite a slight pullback over the past week (-0.90%). The one-day gain of +0.68% on 03 January 2026 reflects renewed buying interest. This technical profile suggests that the stock is in a constructive phase, supported by underlying fundamentals and market sentiment.
Institutional Confidence and Market Position
Infosys enjoys strong backing from institutional investors, with holdings at 71.28%. Such investors typically have greater resources and expertise to analyse company fundamentals, lending credibility to the stock’s prospects. The company’s sizeable market cap and significant share of sector sales (₹1,69,458 crore, representing 17.22% of the industry) further reinforce its leadership position and ability to influence sector trends.
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What This Rating Means for Investors
The 'Buy' rating on Infosys Ltd signals that the stock is favourably positioned for investors seeking exposure to the software and consulting sector. The combination of excellent quality metrics, fair valuation, stable financial trends, and a mildly bullish technical outlook suggests a balanced risk-reward profile. Investors can expect steady returns supported by strong fundamentals and institutional confidence, although the stock’s recent negative one-year return reminds that market volatility and sector dynamics remain relevant considerations.
In summary, the current MarketsMOJO rating reflects a comprehensive evaluation of Infosys Ltd’s strengths and challenges as of 03 January 2026. The company’s leadership in the sector, solid profitability, and prudent financial management underpin the positive recommendation, making it a compelling option for investors with a medium to long-term horizon.
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