Infosys Ltd (INFY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Persistent Syste

HCL Technologies

Tech Mahindra

TCS

Infosys

LTIMindtree

Coforge

Hexaware Tech.

L&T Technology

Wipro

Mphasis

Why is Infosys Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 31.88%

Healthy long term growth as Net Sales has grown by an annual rate of 12.19%
Company has a low Debt to Equity ratio (avg) at 0 times

Flat results in Dec 25

CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 19,915.00 cr
DEBTORS TURNOVER RATIO(HY) Lowest at 4.79 times

With ROE of 34.8, it has a Attractive valuation with a 6 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.27%, its profits have risen by 4.5% ; the PEG ratio of the company is 2.4
At the current price, the company has a high dividend yield of 3.8

High Institutional Holdings at 71.55%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.27% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Infosys should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Infosys for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Infosys

-22.27%

-0.87

25.74%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.19%

EBIT Growth (5y)

9.40%

EBIT to Interest (avg)

99.13

Debt to EBITDA (avg)

0.22

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.65

Tax Ratio

27.94%

Dividend Payout Ratio

66.74%

Pledged Shares

Institutional Holding

71.55%

ROCE (avg)

50.97%

ROE (avg)

31.88%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.96

EV to EBIT

13.17

EV to EBITDA

11.64

EV to Capital Employed

7.34

EV to Sales

2.75

PEG Ratio

2.44

Dividend Yield

3.78%

ROCE (Latest)

55.71%

ROE (Latest)

34.81%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

ROCE(HY)

Highest at 44.18%

NET SALES(Q)

Highest at Rs 45,479.00 cr

PBDIT(Q)

Highest at Rs 10,634.00 cr.

PBT LESS OI(Q)

Highest at Rs 9,379.00 cr.

PAT(Q)

Highest at Rs 7,585.03 cr.

-3What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 19,915.00 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.79 times

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Here's what is working for Infosys

Net Sales - Quarterly

Highest at Rs 45,479.00 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 10,634.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 9,379.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 7,585.03 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Infosys

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 19,915.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 4.79 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio