Infosys Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.
Growth
Compounded Sales Growth
10 Years:
12%
5 Years:
13%
3 Years:
15%
TTM:
3%
Compounded Profit Growth
10 Years:
9%
5 Years:
11%
3 Years:
10%
TTM:
8%
Stock Price CAGR
10 Years:
15%
5 Years:
19%
3 Years:
5%
1 Year:
30%
Return on Equity
10 Years:
27%
5 Years:
29%
3 Years:
31%
Last Year:
32%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
286
286
572
1,144
1,144
1,088
2,170
2,122
2,124
2,098
2,069
2,071
Reserves
37,708
44,244
50,164
60,600
67,838
63,835
62,778
63,328
74,227
73,252
73,338
86,045
Borrowings
0
0
0
0
0
0
0
4,633
5,325
5,474
8,299
8,359
Other Liabilities
8,281
12,436
15,553
13,354
14,166
14,426
19,118
21,717
25,835
35,905
40,890
39,545
Total Liabilities
46,275
56,966
66,289
75,098
83,148
79,349
84,066
91,800
107,511
116,729
124,596
136,020
Fixed Assets
7,139
8,378
11,346
13,386
14,179
12,574
15,710
23,789
25,505
25,800
29,225
27,622
CWIP
1,140
961
776
960
1,365
1,606
1,388
954
922
416
288
293
Investments
2,116
4,331
2,270
1,892
16,423
12,163
11,261
8,792
14,205
20,324
19,478
24,623
Other Assets
35,880
43,296
51,897
58,860
51,181
53,006
55,707
58,265
66,879
70,189
75,605
83,482
Total Assets
46,275
56,966
66,289
75,098
83,148
79,349
84,066
91,800
107,511
116,729
124,596
136,020
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
7,373
9,825
8,353
10,028
11,531
13,218
14,841
17,003
23,224
23,885
22,467
25,210
Cash from Investing Activity
-2,922
-2,563
999
-885
-14,664
4,533
-632
-331
-7,373
-6,485
-1,071
-5,093
Cash from Financing Activity
-3,210
-3,144
-4,935
-6,813
-6,939
-20,505
-14,512
-17,591
-9,786
-24,642
-26,695
-17,504
Net Cash Flow
1,241
4,118
4,417
2,330
-10,072
-2,754
-303
-919
6,065
-7,242
-5,299
2,613
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
11.00
13.00
14.00
17.00
18.00
18.00
20.00
18.00
22.00
26.00
27.00
28.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Infosys Ltd as of October 5, 2024 is: ₹1,939.29
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 5, 2024, Infosys Ltd is Undervalued by 1.11% compared to the current share price ₹1,918.00
Intrinsic Value of Infosys Ltd as of October 5, 2024 is: ₹2,078.39
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 5, 2024, Infosys Ltd is Undervalued by 8.36% compared to the current share price ₹1,918.00
Last 5 Year EPS CAGR: 7.17%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a high average ROCE of 34.83%, which is a positive sign.
The company has higher reserves (63,113.08 cr) compared to borrowings (2,674.17 cr), indicating strong financial stability.
The company has shown consistent growth in sales (91.54 cr) and profit (23.31 cr) over the years.
The stock has a high average Working Capital Days of 34.58, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 66.92, which may not be favorable.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Infosys Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 29.77% (Industry Average ROE: 17.17%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 29.9 (Industry average Stock P/E: 119.59)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Infosys Ltd. is a Public Limited Listed company incorporated on 02/07/1981 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L85110KA1981PLC013115 and registration number is 013115. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 103940.00 Cr. and Equity Capital is Rs. 2103.00 Cr. for the Year ended 31/03/2022.
INDUSTRY
ADDRESS
CONTACT
IT Consulting & Software
No. 44, Hosur Road, Electronics City, Bengaluru Karnataka 560100
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Infosys Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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