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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coforge

Persistent Syste

LTI Mindtree

Hexaware Tech.

HCL Technologies

Tech Mahindra

Mphasis

TCS

L&T Technology

Infosys

Wipro

Why is Infosys Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 29.25%

Healthy long term growth as Net Sales has grown by an annual rate of 12.37%
Company has a low Debt to Equity ratio (avg) at 0 times

Flat results in Sep 25

ROCE(HY) Lowest at 28.98%
DEBTORS TURNOVER RATIO(HY) Lowest at 0.50 times

With ROE of 27.2, it has a Fair valuation with a 6.4 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -15.92%, its profits have risen by 4.4% ; the PEG ratio of the company is 5.5

High Institutional Holdings at 71.75%

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.89% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.92% returns

With its market cap of Rs 6,63,826 cr, it is the second biggest company in the sector (behind TCS)and constitutes 15.57% of the entire sector

Its annual Sales of Rs 169,458.00 are 17.22% of the industry

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

-16.09%

-0.64

24.81%

Sensex

4.84%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.37%

EBIT Growth (5y)

10.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.23

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

1.65

Tax Ratio

28.35%

Dividend Payout Ratio

66.74%

Pledged Shares

Institutional Holding

71.75%

ROCE (avg)

50.91%

ROE (avg)

29.25%

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

6.42

EV to EBIT

17.62

EV to EBITDA

15.52

EV to Capital Employed

9.29

EV to Sales

3.71

PEG Ratio

5.49

Dividend Yield

2.82%

ROCE (Latest)

52.69%

ROE (Latest)

27.22%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

11What is working for the Company

OPERATING CF(Y)

Highest at Rs 35,694.00 Cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 318,320.00 cr

NET SALES(Q)

Highest at Rs 44,490.00 cr

PBDIT(Q)

Highest at Rs 10,535.00 cr.

PBT LESS OI(Q)

Highest at Rs 9,247.00 cr.

PAT(Q)

Highest at Rs 7,364.00 cr.

EPS(Q)

Highest at Rs 17.75

-6What is not working for the Company

ROCE(HY)

Lowest at 28.98%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.50 times

Loading Valuation Snapshot...

Here's what is working for Infosys

Operating Cash Flow - Annually

Highest at Rs 35,694.00 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 44,490.00 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 10,535.00 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 9,247.00 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 7,364.00 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 17.75

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 318,320.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Infosys

Debtors Turnover Ratio- Half Yearly

Lowest at 0.50 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio