⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
INFY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | INFY | Market Cap | 5,14,167 Cr. | Current Price | 1,267 ₹ | High / Low | 1,728 ₹ |
| Stock P/E | 17.9 | Book Value | 179 ₹ | Dividend Yield | 3.39 % | ROCE | 40.6 % |
| ROE | 30.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,412 ₹ | DMA 200 | 1,525 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.38 % | PAT Qtr | 8,202 Cr. | PAT Prev Qtr | 7,718 Cr. |
| RSI | 33.1 | MACD | -58.2 | Volume | 1,28,14,349 | Avg Vol 1Wk | 1,06,25,008 |
| Low price | 1,215 ₹ | High price | 1,728 ₹ | PEG Ratio | 2.81 | Debt to equity | 0.05 |
| 52w Index | 10.2 % | Qtr Profit Var | 29.0 % | EPS | 67.5 ₹ | Industry PE | 20.9 |
📊 Core Financials
- Revenue Growth: Quarterly PAT rose to ₹8,202 Cr from ₹7,718 Cr
- Profit Margins: Strong with ROE at 30.3% and ROCE at 40.6%
- Debt Ratios: Very low (Debt-to-Equity 0.05) ensuring stability
- Cash Flows: Healthy, supported by dividend yield of 3.39%
- Return Metrics: Excellent capital efficiency
💹 Valuation Indicators
- P/E Ratio: 17.9 (below industry average of 20.9, undervalued)
- P/B Ratio: ~7.1 (Price ₹1267 / Book Value ₹179)
- PEG Ratio: 2.81 (slightly high, growth priced in)
- Intrinsic Value: Attractive compared to peers
🏢 Business Model & Competitive Advantage
- Global IT services leader with diversified offerings in consulting, digital, and cloud
- Strong client base across industries with brand recognition
- Operational excellence reflected in superior ROCE and ROE
📈 Entry Zone Recommendation
- Current Price: ₹1,267
- Support Zone: ₹1,215 – ₹1,250 (RSI at 33.1 indicates oversold)
- Long-term Holding: Strong fundamentals, dividend yield, and low debt make it a solid hold
✅ Positive
- High profitability and return ratios
- Low debt ensures resilience
- Dividend yield enhances investor returns
⚠️ Limitation
- PEG ratio indicates growth premium already priced
- Stock trading below DMA 50 and DMA 200 shows weak momentum
📉 Company Negative News
- Decline in DII holdings (-0.38%) reflects cautious domestic sentiment
- Technical indicators (MACD negative, RSI low) suggest bearish short-term trend
📈 Company Positive News
- Quarterly profit growth of 29% highlights strong performance
- FII holdings increased (+0.19%), showing foreign investor confidence
🌐 Industry
- IT services sector remains strong with digital transformation demand
- Industry P/E at 20.9 highlights Infosys trading at a discount
🔎 Conclusion
Infosys shows robust fundamentals with strong profitability, low debt, and attractive valuations compared to industry peers. Despite short-term technical weakness, the stock offers a good entry opportunity around ₹1,215–₹1,250 for long-term investors. Dividend yield and global positioning make it a reliable wealth creator over time.