INFY - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: Infosys Ltd. (INFY)

Investment Rating: 4.2

🧮 Fundamentals Breakdown

ROE: 28.8% and ROCE: 37.5% — outstanding metrics, showing strong capital efficiency and profitability.

EPS: ₹65.6 vs. P/E: 23.1 — reasonable valuation compared to industry PE (29.1), with solid earnings.

PEG Ratio: 3.58 — a bit high; suggests price may be ahead of earnings growth. Slight caution on aggressive upside.

Dividend Yield: 2.84% — quite respectable, provides income alongside growth.

Debt-to-Equity: 0.09 — healthy balance sheet, low leverage.

📌 Stable financials and strong return ratios make INFY a quality long-term candidate in the Indian IT sector.

📉 Technical Indicators & Valuation Trends

RSI: 32.0 — nearing oversold territory; potential support zone.

MACD: -19.2 — bearish momentum; needs trend reversal confirmation.

Trading below 50 & 200 DMA — technically weak, but a contrarian opportunity for long-term entry.

🎯 Ideal Entry Price Zone: ₹1,420 – ₹1,480 This range balances near-term technical support and fair valuation. ₹1,307 is key support; consider accumulating gradually if it dips closer.

🧭 Holding / Exit Strategy

✅ Hold Strategy

Holding Period: 3–5 years (ideal for compounding returns from dividends and earnings)

Maintain holding if

ROE stays above 20%

EPS grows > ₹75 over next 6–8 quarters

Dividend payout ratio remains steady or improves

Operating margins stabilize above 20%

🚪 Exit Signals

Partial Profit Booking: ₹1,950+ on rally momentum and sector rotation

Full Exit If

ROE dips below 15% consistently

EPS stagnates or declines over 3+ quarters

Global tech spending outlook weakens

Price falls below ₹1,300 with no recovery trend

INFY is a leader with predictable growth and robust fundamentals—a classic compounding stock for patient investors. Want me to sketch out a SIP strategy or compare it with peers like TCS, Wipro, or HCL Tech? Let’s keep building your long-term blueprint 📈🧠

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