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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Infosys Ltd

About the Company - Infosys Ltd

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.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareNo. 44, Hosur Road, Electronics City, Bengaluru Karnataka 560100investors@infosys.com
http://www.infosys.com
Management
NamePosition Held
Mr. Nandan M NilekaniChairman
Mr. Salil ParekhManaging Director & CEO
Mr. D SundaramLead Independent Director
Mr. Michael GibbsIndependent Director
Mr. Govind IyerIndependent Director
Ms. Chitra NayakIndependent Director
Mr. Bobby ParikhIndependent Director

Infosys Ltd. Share Price Update

Share PriceValue
Today₹1,680.25
Previous Day₹1,656.05

Basic Stock Data of Infosys Ltd

Market Cap 7,06,261 Cr.
Current Price 1,702
High / Low1,733/1,185
Stock P/E29.0
Book Value 193
Dividend Yield2.00 %
ROCE40.5 %
ROE31.8 %
Face Value 5.00

Data Source: screener.in

Competitors of Infosys Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tanla Platforms Ltd 13,426 Cr. 9991,318/49325.0 1300.99 %37.9 %31.2 % 1.00
Trigyn Technologies Ltd 409 Cr. 133168/84.8116 2310.00 %9.28 %5.38 % 10.0
Sasken Technologies Ltd 2,624 Cr. 1,7431,820/77033.4 4991.42 %17.1 %13.8 % 10.0
Zensar Technologies Ltd 12,068 Cr. 533644/25919.7 1440.94 %14.5 %11.2 % 2.00
Cybertech Systems & Software Ltd 532 Cr. 171215/84.825.3 53.11.16 %20.0 %13.8 % 10.0
Industry Average193.6 Cr367.443.88211.420.9%19.76%15.08%6.6

Infosys Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales24,57025,92726,31127,89629,60231,86732,27634,47036,53838,31837,44137,93338,994
Expenses17,48718,51219,04020,46421,77123,48424,43026,60627,63628,95128,44328,86929,554
Operating Profit7,0837,4157,2717,4327,8318,3837,8467,8648,9029,3678,9989,0649,440
OPM %29%29%28%27%26%26%24%23%24%24%24%24%24%
Other Income570611545622524512637676584769671561632
Interest484950494853505666808290138
Depreciation8558268318298598998909501,0291,1251,1211,1731,166
Profit before tax6,7507,1516,9357,1767,4487,9437,5437,5348,3918,9318,4668,3628,768
Tax %28%27%27%28%27%27%24%29%28%26%28%29%29%
Net Profit4,8585,2155,0785,2015,4285,8225,6955,3626,0266,5866,1345,9456,215
EPS in Rs11.3712.2011.9112.2012.8913.8113.5212.7414.3115.7014.7714.3214.97

Infosys Ltd Quarterly Chart

Infosys Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales33,73440,35250,13353,31962,44168,48470,52282,67590,791100,472121,641146,767153,189
Expenses23,00728,81436,74338,43645,36249,88051,70062,50568,52472,58390,150111,637116,550
Operating Profit10,72711,53813,39014,88317,07918,60418,82220,17022,26727,88931,49135,13036,639
OPM %32%29%27%28%27%27%27%24%25%28%26%24%24%
Other Income1,9042,3652,6643,4303,1203,0503,3112,8822,8032,2012,2952,7012,653
Interest459120000170195200284441
Depreciation9281,0991,3171,0171,4591,7031,8632,0112,8933,2673,4764,2254,636
Profit before tax11,69912,79914,72817,28418,74019,95120,27021,04122,00726,62830,11033,32234,215
Tax %29%26%28%28%28%28%21%27%24%27%26%28%
Net Profit8,3329,42910,65612,37213,48914,35316,02915,41016,63919,42322,14624,10824,407
EPS in Rs18.1420.5223.3126.9329.3631.2436.6935.2638.9645.4252.5658.0858.77
Dividend Payout %32%25%34%55%41%41%59%60%45%59%59%58%

Infosys Ltd Profit & Loss Yearly Chart

Infosys Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:16%
3 Years:17%
TTM:8%
Compounded Profit Growth
10 Years:10%
5 Years:9%
3 Years:13%
TTM:3%
Stock Price CAGR
10 Years:14%
5 Years:17%
3 Years:9%
1 Year:6%
Return on Equity
10 Years:26%
5 Years:28%
3 Years:29%
Last Year:32%

Infosys Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2862862865721,1441,1441,0882,1702,1222,1242,0982,0692,070
Reserves31,04637,70844,24450,16460,60067,83863,83562,77863,32874,22773,25273,33878,698
Borrowings000000004,6335,3255,4748,2998,546
Other Liabilities7,0258,28112,43615,55313,35414,16614,42619,11821,71725,83535,90540,89040,985
Total Liabilities38,35746,27556,96666,28975,09883,14879,34984,06691,800107,511116,729124,596130,299
Fixed Assets5,5557,1398,37811,34613,38614,17912,57415,71023,78925,50525,80029,22528,279
CWIP5901,1409617769601,3651,6061,388954922416288497
Investments3722,1164,3312,2701,89216,42312,16311,2618,79214,20520,32419,47819,323
Other Assets31,84035,88043,29651,89758,86051,18153,00655,70758,26566,87970,18975,60582,200
Total Assets38,35746,27556,96666,28975,09883,14879,34984,06691,800107,511116,729124,596130,299

Infosys Ltd Reserves and Borrowings Chart

Infosys Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6,3947,3739,8258,35310,02811,53113,21814,84117,00323,22423,88522,467
Cash from Investing Activity -147-2,922-2,563999-885-14,6644,533-632-331-7,373-6,485-1,071
Cash from Financing Activity -2,322-3,210-3,144-4,935-6,813-6,939-20,505-14,512-17,591-9,786-24,642-26,695
Net Cash Flow3,9251,2414,1184,4172,330-10,072-2,754-303-9196,065-7,242-5,299

Infosys Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days646461666666686574706863
Inventory Days
Days Payable
Cash Conversion Cycle646461666666686574706863
Working Capital Days26331533438503644383134
ROCE %41%37%36%36%33%30%30%32%32%35%37%40%

Infosys Ltd Financial Efficiency Indicators Chart

Infosys Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters12.95%12.95%12.95%13.12%13.12%13.11%13.11%15.16%15.11%15.14%14.94%14.89%
FIIs32.26%32.67%33.39%33.46%33.17%33.30%31.72%36.20%36.29%35.09%33.44%33.60%
DIIs23.75%23.10%21.98%15.66%16.31%17.10%18.88%32.13%32.50%33.59%34.58%35.19%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.18%0.19%0.19%0.20%0.19%
Public30.66%30.92%31.32%37.41%37.06%36.16%35.98%15.93%15.53%15.67%16.52%15.83%
Others0.38%0.36%0.36%0.35%0.34%0.33%0.31%0.35%0.34%0.33%0.32%0.31%
No. of Shareholders12,80,68614,09,78216,42,81018,17,77918,97,18521,28,82726,64,56428,93,20927,36,97528,01,57431,44,61330,09,448

Infosys Ltd Shareholding Pattern Chart

No. of Infosys Ltd Shareholders

Infosys Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF662165395.889635.5
SBI S&P BSE Sensex ETF466877036.86794.46
SBI Equity Hybrid Fund210000004.973055.82
ICICI Prudential Technology Fund1871503123.522723.32
UTI Nifty 50 ETF181227255.882637.13
Mirae Asset Large Cap Fund180824307.282631.26
ICICI Prudential Bluechip Fund167607705.492438.94
UTI S&P BSE Sensex ETF157726376.82295.39
ICICI Prudential Value Discovery Fund142796955.922077.91
Kotak Flexicap Fund - Regular Plan137000004.821993.56

Infosys Ltd ROCE Trend

Infosys Ltd EPS Trend

Infosys Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)201.6084.7139.2553.7544.44
Diluted EPS (Rs.)201.6084.7139.2553.7544.44
Cash EPS (Rs.)217.8098.0654.9366.7051.23
Book Value[Excl.RevalReserv]/Share (Rs.)502.69312.85238.57201.87163.17
Book Value[Incl.RevalReserv]/Share (Rs.)502.69312.85238.57201.87163.17
Revenue From Operations / Share (Rs.)986.00611.96369.61338.58345.84
PBDIT / Share (Rs.)291.99129.6770.5685.0282.66
PBIT / Share (Rs.)276.37116.6655.3173.7176.96
PBT / Share (Rs.)274.88114.9953.3172.1476.36
Net Profit / Share (Rs.)202.1885.0439.6855.4045.53
NP After MI And SOA / Share (Rs.)201.6084.6739.2453.7444.43
PBDIT Margin (%)29.6121.1819.0925.1023.90
PBIT Margin (%)28.0219.0614.9621.7722.25
PBT Margin (%)27.8718.7914.4221.3022.08
Net Profit Margin (%)20.5013.8910.7316.3613.16
NP After MI And SOA Margin (%)20.4413.8310.6115.8712.84
Return on Networth / Equity (%)40.1027.0616.4526.6227.22
Return on Capital Employeed (%)54.9436.3021.3931.4739.52
Return On Assets (%)34.2120.9912.7019.3319.39
Long Term Debt / Equity (X)0.000.020.070.140.18
Total Debt / Equity (X)0.010.060.070.140.22
Asset Turnover Ratio (%)2.011.711.241.311.69
Current Ratio (X)5.373.534.013.914.12
Quick Ratio (X)3.682.603.202.933.27
Inventory Turnover Ratio (X)7.207.445.956.097.71
Dividend Payout Ratio (NP) (%)4.4612.997.6420.4615.75
Dividend Payout Ratio (CP) (%)4.1411.265.5016.9113.96
Earning Retention Ratio (%)95.5487.0192.3679.5484.25
Cash Earning Retention Ratio (%)95.8688.7494.5083.0986.04
Interest Coverage Ratio (X)195.7377.8235.3054.07137.79
Interest Coverage Ratio (Post Tax) (X)136.5252.0320.8436.2376.91
Enterprise Value (Cr.)12708.8812135.046792.445712.023795.25
EV / Net Operating Revenue (X)4.206.475.995.503.58
EV / EBITDA (X)14.2030.5231.4021.9114.98
MarketCap / Net Operating Revenue (X)4.376.566.185.623.58
Retention Ratios (%)95.5387.0092.3579.5384.24
Price / BV (X)8.5712.839.579.427.58
Price / Net Operating Revenue (X)4.376.566.185.623.58
EarningsYield0.040.020.010.020.03

Infosys Ltd Profitability Ratios (%)

Infosys Ltd Liquidity Ratios

Infosys Ltd Liquidity Ratios (%)

Infosys Ltd Interest Coverage Ratios (%)

Infosys Ltd Valuation Ratios

Fair Value of Infosys Ltd Stock

Fair Value: ₹1815.44

The stock is undervalued by 6.67% compared to the current price ₹1702

*Investments are subject to market risks

Strength and Weakness of Infosys Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 34.92%, which is a positive sign.
  2. The company has higher reserves (60,081.23 cr) compared to borrowings (2,482.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (82.15 cr) and profit (21.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 119.80 and average Dividend Yield of 21.21%.
  2. The stock has a high average Working Capital Days of 31.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 66.25, which may not be favorable.

About the Author

Author Avatar
Getaka

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