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Infosys Ltd. Fundamental Analysis English

5 min read

Infosys Ltd Fundamental Analysis

Infosys Ltd’s fundamental analysis shows a market capitalization of ₹7,44,598.77 crore, a PE ratio of 27.56, a debt-to-equity ratio of 0.1, and a return on equity (ROE) of 31.8%. The company demonstrates strong financial performance and minimal leverage, reflecting its robust market position.

Infosys Ltd Overview

Infosys Ltd is a global leader in consulting, technology, and outsourcing services, providing innovative solutions to clients worldwide. The company specializes in digital transformation, IT consulting, and next-generation technology services, driving business growth and efficiency for its clients.

The company has a market capitalization of ₹7,44,598.77 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 28.9% below its 52-week high of ₹1,903 and 0.8% above its 52-week low of ₹1,352. The all-time high of the stock is ₹1,954, while the all-time low is ₹117.

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Infosys Financial Results

Infosys Ltd’s financial performance shows growth, with sales increasing from ₹1,21,641 crore in FY 22 to ₹1,53,670 crore in FY 24. Profitability has been stable, with EPS rising from ₹52.52 to ₹63.39 and OPM fluctuating between 24% and 26%.

  1. Revenue Trend: Sales increased from ₹1,21,641 crore in FY 22 to ₹1,46,767 crore in FY 23, and further to ₹1,53,670 crore in FY 24, indicating strong revenue growth.
  1. Equity and Liabilities: Infosys Ltd’s equity and liabilities structure reflects financial stability and strategic management. The company maintains a balance between equity financing and manageable debt levels, ensuring sustainability and flexibility in capital allocation for growth initiatives.
  1. Profitability: Operating Profit Margin (OPM) remained stable at 24% in FY 23 and FY 24, slightly down from 26% in FY 22, reflecting consistent operational efficiency.
  1. Earnings per Share (EPS): EPS increased from ₹52.52 in FY 22 to ₹57.63 in FY 23, and further to ₹63.39 in FY 24, indicating steady profit growth per share.
  1. Return on Net Worth (RoNW): RoNW has shown a stable trend, increasing from 30.63% in FY 22 to 34.34% in FY 23, and slightly decreasing to 33.54% in FY 24, reflecting consistent equity utilization efficiency and profitability.
  1. Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹33,786 crore in FY 22 to ₹37,831 crore in FY 23, and further to ₹41,136 crore in FY 24, showcasing robust financial health and management.

Infosys Financial Analysis

FY 24FY 23FY 22
Sales1,53,6701,46,7671,21,641
Expenses1,17,2451,11,63790,150
Operating Profit36,42535,13031,491
OPM %242426
Other Income4,7112,7012,295
EBITDA41,13637,83133,786
Interest470284200
Depreciation4,6784,2253,476
Profit Before Tax35,98833,32230,110
Tax %27.0627.6526.45
Net Profit26,24824,10822,146

All values in ₹ Crores.

Infosys Company Metrics

Infosys Ltd’s market cap is ₹7,44,598.77 crore, with a book value of ₹200 per share and face value of ₹5. It has a debt of ₹8,361 crore, EBITDA of ₹41,136 crore, dividend yield of 2.11%, and EPS of ₹64.2, showcasing strong profitability.

Market Capitalization: Infosys Ltd’s market capitalization represents the total market value of its outstanding shares, amounting to ₹7,44,598.77 crore.

Book Value: Infosys Ltd has a book value of ₹200 per share, representing the net asset value of the company divided by the number of outstanding shares.

Face Value: The face value of Infosys Ltd’s shares is ₹5.00, which is the nominal value of each share as stated on the share certificate.

Asset Turnover: Infosys Ltd has an asset turnover ratio of 1.18, indicating the company’s efficiency in using its assets to generate revenue.

Total Debt: Infosys Ltd has a debt of ₹8,361 crore, reflecting its financial leverage and obligations.

EBITDA: Infosys Ltd’s EBITDA increased from ₹33,786 crore in FY 22 to ₹37,831 crore in FY 23, and further to ₹41,136 crore in FY 24, showcasing its operational performance and profitability over these years.

Dividend Yield: Infosys Ltd has a dividend yield of 2.11%, reflecting the annual dividend income relative to its current share price.

Earnings per Share (EPS): Infosys Ltd has an EPS of ₹64.2, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its 

Infosys Stock Performance 

Infosys Ltd delivered notable returns on investment with 31.0% over 1 year and 18.3% over 5 years, despite a moderate gain of 1.63% over 3 years. This highlights strong long-term performance and overall profitability for investors.

PeriodReturn on Investment (%)
1 Year31.0 
3 Years1.63 
5 Years18.3 

Example: If an investor had invested ₹1,000 in Infosys Ltd’s stock:

1 year ago, their investment would be worth ₹1,310.

3 years ago, their investment would have grown to ₹1,016.

5 years ago, their investment would have increased to approximately ₹1,183.

This highlights strong long-term performance and overall profitability for investors.

Infosys Peer Comparison

Infosys has a CMP of ₹1797.4, market cap of ₹7,46,285.6 crore, P/E of 28, and dividend yield of 2.11%. TCS, HCL Technologies, Wipro, LTIMindtree, Tech Mahindra, and Persistent Systems show varied performance metrics with different market caps, P/E ratios, and returns.

NameCMP Rs.Mar Cap Rs.Cr.P/EROE %EPS 12M Rs.1Yr return %ROCE %Div Yld %
TCS4195.651518022.8931.951.51129.221.6664.281.31
Infosys1797.4746285.62831.8364.2131.0239.992.11
HCL Technologies1585.25430183.7626.1923.360.5335.3229.63.28
Wipro489.05255796.3522.8814.3121.3918.416.930.2
LTIMindtree5400.45159946.8135.0425.03154.185.7431.171.2
Tech Mahindra1512.5147911.4558.778.6325.7723.9311.882.64
Persistent Sys4675.972032.2461.5123.9976.0691.1429.170.56

Infosys Shareholding Pattern

The main shareholders of Infosys Ltd in FY 2024 include promoters holding 14.71%, Foreign Institutional Investors (FIIs) with 34.11%, Domestic Institutional Investors (DIIs) with 35.9%, and retail and other investors holding 15.28%.

FY 2024FY 2023FY 2022
Promoters14.7115.1413.11
FII34.1135.0933.3
DII35.933.8417.1
Retail & others15.2815.9436.49

All values in %

Infosys Ltd History

Infosys Ltd was founded in 1981 by seven engineers led by N.R. Narayana Murthy. Starting with a small capital in Pune, the company has grown to become a global leader in consulting, technology, and outsourcing services, headquartered in Bangalore.

In 1993, Infosys went public, listing on the Bombay Stock Exchange. This marked a significant milestone in its growth, paving the way for expansion and innovation. The IPO was well-received, underscoring investor confidence in the company’s vision and potential.

Infosys entered the global arena in 1999 by listing on the NASDAQ, making it the first Indian company to do so. This move symbolized Infosys’ commitment to global standards and its ambition to be a major player in the international IT services market.

In 2002, Infosys established its first overseas office in China, signifying its strategic expansion into Asia. Over the years, Infosys has continued to grow its global footprint, with offices and delivery centers in multiple countries, serving clients worldwide.

Infosys has been a pioneer in corporate governance and sustainability, consistently being recognized for its ethical practices and transparent operations. The company has also made significant investments in innovation and digital transformation, maintaining its leadership position in the rapidly evolving IT landscape.

How To Invest In Infosys Ltd Share?

Investing in Infosys Ltd shares is a straightforward process:

  • Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
  • Complete KYC: Submit necessary documents for KYC verification.
  • Fund Your Account: Deposit funds into your trading account.
  • Buy Shares: Search for Infosys Ltd shares and place your buy order.

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Infosys Limited Fundamental Analysis – FAQs

1. What Is The Fundamental Analysis Of Infosys?

Infosys Ltd’s fundamental analysis shows a market capitalization of ₹7,44,598.77 crore, a PE ratio of 27.56, a debt-to-equity ratio of 0.1, and a return on equity (ROE) of 31.8%, indicating strong financial performance and minimal leverage.

2. What is the Market Cap of Infosys Ltd?

Infosys Ltd has a market capitalization of ₹7,44,598.77 crore, reflecting its substantial market value and prominent position in the IT services sector.

3. What Is Infosys Limited?

Infosys Limited is a global leader in consulting, technology, and outsourcing services, providing innovative solutions in digital transformation, IT consulting, and next-generation technology services to clients worldwide.

4. Who Is Infosys Owner?

Infosys Limited is a publicly owned company with significant shareholders including institutional investors, mutual funds, and individual shareholders. It was co-founded by N.R. Narayana Murthy.

5. Who Are The Main Shareholders Of Infosys?

The main shareholders of Infosys Ltd in FY 2024 include promoters holding 14.71%, Foreign Institutional Investors (FIIs) with 34.11%, Domestic Institutional Investors (DIIs) with 35.9%, and retail and other investors holding 15.28%.

6. What Type Of Industry Is Infosys?

Infosys operates in the IT services and consulting industry, specializing in digital transformation, IT consulting, technology services, and outsourcing solutions.

7. How To Invest In Infosys Ltd Share?

To invest in Infosys shares, open a brokerage account, complete KYC, deposit funds, and purchase shares through the stock exchange using your broker’s platform or app.

8. Is Infosys Overvalued Or Undervalued?

Determining if Infosys is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. Based on its PE ratio of 27.56, Infosys may be considered fairly valued, suggesting the stock is priced in line with its earnings, which investors should consider when evaluating its investment potential.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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