Infosys
NSE: INFY•Information Technology
Current Price
₹1,620
TECH-FUNDA™
Neutral
Tier-1 IT services exporter delivering global digital transformation, cloud migrations, and generative AI deployments to corporate clients.
Price to Earnings (P/E)
25.8
Trailing Twelve Months
Return on Equity (ROE)
29.6%
Shareholder Capital Return
Price to Book (P/B)
7.2x P/B
Asset Backing
Enterprise Multiple
16.5x
EV / EBITDA
Fundamental Quality Core
3-Stage DuPont ROE Decomposition
ROE = Net Margin × Asset Turnover × Equity Multiplier
1. Operating Margin
16.8%
Operating efficiency and pricing power translation to net earnings.
2. Asset Turnover
1.28x
Capital velocity; revenue generated per rupee of assets deployed.
3. Financial Leverage
1.38x
Total assets divided by net worth; leverage multiplier to equity.
DuPont Assessment: Strong capital return efficiency; high payout ratios ensure optimal equity balance base.
01 · BUSINESS
Business Quality & Moat
Competitive Moat: Established delivery network and multi-decade client stickiness across North America and Europe.
Pricing Power: Stable pricing in core legacy services; margin expansion tied to automation.
Growth Catalysts: Topaz AI platform contracts and large cost-optimization multi-year renewals.
02 · FUNDAMENTALS
Financial & Balance Sheet
Balance Sheet Health: Zero debt, strong cash reserves, and robust return on invested capital (ROIC > 35%).
Cash Flow Dynamics: High FCF yield returned to equity holders via periodic share buybacks and dividends.
Capital Discipline: Low inventory; standard 60-70 day billing receivable cycle.
03 · VALUE
Valuation Intelligence
Price Multiple Context: Trading at 25.8 P/E and 7.2x P/B.
Historical Benchmark: Trading close to historical 5-year average valuation benchmarks.
04 · RISK
Risk & Downside Watch
Corporate Governance: Independent board with established transparent disclosures.
Execution Headwinds: Maintaining utilization rates above 82% amidst selective discretionary client spending.
Economic Sensitivity: Foreign currency INR/USD volatility and US commercial banking expenditure trends.
TECH-FUNDA™ RESEARCH PIPELINE
Market Filter→Business Moat→DuPont ROE→Valuation Margin→Active Thesis