Thursday February 25, 2021 25 February 2021

NEWS BITES - BRIC

Infosys Ltd. (NSE:INFY), India's 2nd largest IT consulting & software company by market cap, has increased Rs0.25 (0.02%) from its previous trading session to close at Rs1,274.55. Compared with the BSE SENSEX Index which rose 257.6 points (0.5%) in the day, the relative price change was -0.5%. Today the stock traded at its three-day high of Rs1,299.75.

The 200-day Moving Average Price (MAP) is Rs1,020.61, up from Rs1,017.62 on Wednesday. The price to MAP ratio is 1.25. In the last 3 months the share price has exceeded MAP on 62/62 days; a bullish signal.

There were 10,261,793 shares worth Rs13.2 billion ($182 million) traded today. The volume was 0.8 times the average daily trading volume of 12.2 million shares.

INFY Stock Dashboard (traded in INR)

CurrencyUSD 1 = INR 72.32 SectorIT Consulting & Software
Feb 25 closeRs1,274.55Market CapRs5,428.8 billion [$75.1 billion]
P/E (FY2020)32.7EPS (FY2020)Rs39
Dividend Yield (TTM)1.7%DPS (TTM)Rs18
EPS Growth % (Q2 2020 vs Q1 2020)14.4Shares Outstanding4,259,385,532
Ave Daily Volume12,174,807 shares% Held by 22 Promoters & Promoter Group13.2%
52-Week Range (In INR)497.07 - 1,384.70% Held by 919,009 Public shareholders86.4%

INFY ADR Dashboard (traded in $)

Home ExchangeIndiaRatio2 ADRs equals 1 ordinary share
CodeINFYTypeSponsored
ISINUS4567881085Feb 24 close$17.68
CUSIP456788108EPS Growth % (Q2 2020 vs Q1 2020)14.4
*No. Held by Institutions666,620,956Ave Daily Volume11,852,286 ADRs
Number of shares equivalent333,310,47852-Week Range (In USD)6.60 - 19.07
% of shares outstanding15.7%

*Total ADRs Held by Institutions 666,620,956; equivalent to 333,310,478 Infosys Technologies shares on issue. This represents 15.7% of total shares on issue.

Primary Exchange and Other Listings: Trading Currency and Volume (Excl ADR)

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
National Stock ExchangeINFYINR1,274.5511,595,55185.60.8
Bombay Stock Exchange500209INR1,274.75583,71214.42.5
Total100.00

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

INFY Financials Summary: EPS up 10% to Rs38.97 in FY2020

+ Net profit was up 7.7% from $2.1 billion in FY2019 to $2.3 billion in FY2020.

+ Earnings Per Share (EPS) was up 10% from Rs35.44 in FY2019 to Rs38.97 in FY2020.

Year ended MarFY2020FY2019FY2018
Sales ($ B)12.511.410.2
Pretax ($ B)32.92.8
Net ($ B)2.32.12.2
EPS (INR)38.9735.4435.53

INDEX

SECTION 1 RECENT NEWS

SECTION 2 CORPORATE PROFILE AND INDEPENDENT RATINGS

SECTION 3 TOP SHAREHOLDERS

SECTION 4 TODAY'S BULLISH SIGNALS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 TODAY'S BEARISH SIGNALS

SECTION 7 ONGOING BEARISH PARAMETERS

SECTION 8 PATENTS

SECTION 9 FINANCIALS

SECTION 10 PEER GROUP ANALYSIS & RANKING

SECTION 11 NEWS ARCHIVES (JUN 2019 - NOV 2020)

SECTION 12 CURRENCY SYNOPSIS: INDIAN RUPEES (INR)

SECTION 13 HISTORICAL PERSPECTIVE

SECTION 14 MACROECONOMIC INDICATORS

SECTION 15 CREDIT RATING SUMMARY

GLOSSARY

DATA & ARCHIVE DOWNLOAD CENTER

INFY: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ FINANCIALS - 10-YEAR HISTORY [INCLUDING Q2/2020]:

+ PEER COMPARISON - STOCK IN IT CONSULTING & SOFTWARE SECTOR AND STOCK IN INDICES

+ PATENTS - CATEGORISED LIST OF 5-YEAR HISTORY OF 181 [INCLUDING IN CURRENT WEEK]:

INFY: LINKS IN HTML TO FURTHER INFORMATION:

+ NEWS ARCHIVES - INFY PAST 4 YEARS IN HTML:

+ PRICE VOLUME CHARTS IN HTML

+ USD vs INR EXCHANGE RATE CHARTS IN HTML

SECTION 1 RECENT NEWS

1.1 Financial News

Quarterly Report (Q2/2020):

November 27, 2020

Quarterly Report Analysis Q2 2020: Infosys EPS increases 14%

Infosys (BSE:500209; NSE:INFY), announced EPS of INR11.42 (US15.47c) for the quarter-ended 30 September 2020 [Q2/2020], up 14.4% sequentially from INR9.98 (US13.21c) in the previous quarter [Q1/2020].

Compared with the Previous Corresponding Period [PCP; Q2/2019], year-over-year [y.o.y.] EPS was up 20.7%, Revenue was up 8.6% and Net Profit was up 20.6%.

Read more in SECTION 9 FINANCIALS on Financials

1.2 Share Capital

February 17: Infosys: Listing of further issue

In pursuance of Regulation 3.1.1 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the list of securities further admitted to dealings on the National Stock Exchange (Capital Market segment) with effect from February 18, 2021 along with the designated security codes thereof shall be as specified in the Annexure.

In pursuance of Regulation 2.5.5 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the respective lot sizes in respect of securities above shall be as specified in Annexure.

For the purpose of trading on the system, the security shall be identified only by its designated codes and trading in such securities shall be in such lot sizes as specified in Annexure.

This circular shall be effective from February 18, 2021.

Source: National Stock Exchange of India

January 22: Infosys: Listing of further issue

In pursuance of Regulation 3.1.1 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the list of securities further admitted to dealings on the National Stock Exchange (Capital Market segment) with effect from January 25, 2021 along with the designated security codes thereof shall be as specified in the Annexure.

In pursuance of Regulation 2.5.5 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the respective lot sizes in respect of securities above shall be as specified in Annexure.

For the purpose of trading on the system, the security shall be identified only by its designated codes and trading in such securities shall be in such lot sizes as specified in Annexure.

This circular shall be effective from January 25, 2021.

Source: National Stock Exchange of India

December 24 2020: Infosys: Listing of further issue

In pursuance of Regulation 3.1.1 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the list of securities further admitted to dealings on the National Stock Exchange (Capital Market segment) with effect from December 28, 2020 along with the designated security codes thereof shall be as specified in the Annexure.

In pursuance of Regulation 2.5.5 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the respective lot sizes in respect of securities above shall be as specified in Annexure.

For the purpose of trading on the system, the security shall be identified only by its designated codes and trading in such securities shall be in such lot sizes as specified in Annexure.

This circular shall be effective from December 28, 2020.

Source: National Stock Exchange of India

December 14 2020: Infosys: Listing of further issue

In pursuance of Regulation 3.1.1 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the list of securities further admitted to dealings on the National Stock Exchange (Capital Market segment) - SME EMERGE with effect from December 15, 2020 along with the designated security codes thereof shall be as specified in the Annexure.

In pursuance of Regulation 2.5.5 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the respective lot sizes in respect of securities above shall be as specified in Annexure.

For the purpose of trading on the system, the security shall be identified only by its designated codes and trading in such securities shall be in such lot sizes as specified in Annexure.

This circular shall be effective from December 15, 2020.

Source: National Stock Exchange of India

1.3 Meetings

January 13: Infosys: Outcome of Board Meeting

Infosys Limited has informed the Exchange regarding outcome of Board meeting held on January 13, 2021.

Source: National Stock Exchange of India

1.4 Press Releases

February 24: Infosys Recognized as One of World's Most Ethical Companies by Ethisphere Institute

Infosys (NYSE: INFY), a global leader in next-generation digital services and consulting, today announced that it has been recognized by Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practices, as one of the world's most ethical companies for 2021. Infosys was distinguished for its undiluted commitment towards integrity and making value-based decisions. Through this coveted recognition, Infosys has become one of only four honorees in the Software & Services Industry globally, and one of the only three honorees in India.

Source: Company Website

February 11: Tennis Australia and Infosys Reimagine Digital Experience for Australian Open Virtual Audience

Infosys (NYSE: INFY), a global leader in next-generation digital services and consulting and the Australian Open's Official Digital Innovation Partner, this year is applying technology to enhance tennis experiences for those onsite and those unable to attend in person. Using digital as an equaliser to bridge the physical gap, Infosys and Tennis Australia are opening up new possibilities by leveraging cloud, AI, 3D virtual experiences and mobility. The innovations are envisioned to alter the sporting normal well beyond the current Grand Slam and represent a shift towards placing digital at the core of the tournament to elevate immersion, passion, brilliance and experience for those on court and across the globe.

Source: Company Website

January 27: Infosys: Analysts/Institutional Investor Meet/Con. Call Updates

Infosys Limited has informed the Exchange about Analysts/Institutional Investor Meet/Con. Call Updates

Source: National Stock Exchange of India

January 21: Infosys Named a Leader in the IDC MarketScape for Asia/Pacific Salesforce Implementation Services 2020 Vendor Assessment

Infosys (NYSE: INFY), a global leader in next-generation digital services and consulting has been named as a Leader in the IDC MarketScape: Asia/Pacific Salesforce Implementation Services 2020 Vendor Assessment (doc #AP46211420, November 2020). The report highlights Infosys' highly localized geostrategy in the APAC region to provide end-to-end implementation services across the Salesforce portfolio. Infosys was recognized for its strong focus on automation framework, which has been instrumental in accelerating implementation and time to market of Salesforce solutions, part of Infosys Cobalt.

Source: Company Website

January 20: Infosys Builds applied AI Cloud, Part of Infosys Cobalt, to Democratize AI Within its Workforce and Expand Ability to Drive AI-driven Transformation for Enterprises

Infosys (NYSE: INFY), a global leader in next-generation digital services and consulting, today announced the launch of an Infosys Cobalt offering - its applied AI cloud, built on NVIDIA DGX(TradeMark) A100 systems, the universal system for all AI workloads, offering unprecedented compute density, performance, and flexibility. The powerful new Infosys applied AI cloud will be an AI center of excellence for the company, enabling developers and project teams at Infosys to quickly and easily access AI hardware and software stacks, across both private and public clouds, to build contextualized services that deliver AI-first business processes for enterprises. NVIDIA DGX A100 systems will provide the infrastructure and the advanced compute power needed for over 100 project teams to run machine learning and deep learning operations, simultaneously. NVIDIA Multi-Instance GPU (MIG) technology will enable Infosys to improve infrastructure efficiency and maximize utilization of each DGX A100 system. Teams can process AI algorithms centrally or locally on any device, without lag, using Infosys edge AI.

Source: Company Website

January 18: Infosys: Analysts/Institutional Investor Meet/Con. Call Updates

Infosys Limited has informed the Exchange about Analysts/Institutional Investor Meet/Con. Call Updates

Source: National Stock Exchange of India

1.5 People's News

Mon Dec 21, 2020

Salil S. Parekh's performance as CEO of Infosys (NSE:INFY) is ranked in the top 7% of BuySellSignals performers for the past three years; a percentile ranking of 93.3. In the last 3 years the average annualized return to shareholders was 36.0%. The 3-year average return is ranked 2,848 out of 42,430 public companies traded globally. A two-bagger, the present value of US$1,000 (PV1000) invested 3 years ago is now worth $2,540; a capital gain of $1,311 and dividend reinvested of $230.

SECTION 2 CORPORATE PROFILE AND INDEPENDENT RATINGS

2.1 Activities

Infosys is a global leader in the "next generation" of IT and consulting with revenues of over US$ 4 billion. Infosys defines, designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging it's domain and business expertise and strategic alliances with leading technology providers. Infosys' service offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing

2.2 Independent Ratings

+ Newsweek 500:

Infosys Ltd. was ranked 185 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 9.4% in Energy productivity, 5.5% in Carbon productivity and .1% in Waste productivity.

+ Forbes 2000:

Infosys Ltd. is the 1055th largest by revenue in the Forbes Global 2000.

+ FT 500:

It is the 323rd largest by revenue in the FT Global 500.

2.3 Contact Details

Websitehttp://www.infosys.com
Physical AddressElectronics City Plot 44 and 97A Hosur Road Bangalore, 560100 India
Phone080-28520261
Fax28520362
Emailinfosys@infy.com

2.4 Industry & Sector

Classification LevelName of Sector
Business SectorSoftware & IT Services
Industry GroupSoftware & IT Services
IndustryIT Services & Consulting
ActivityIT Services & Consulting - NEC*
Economic SectorTechnology

* NEC: Not elsewhere classified

SECTION 3 TOP SHAREHOLDERS

Top 14 shareholders

Name of the Share Holder% of Capital
DEUTSCHE BANK TRUST COMPANY AMERICAS17.4
LIFE INSURANCE CORPORATION OF INDIA6.6
SBI Mutual Fund2.6
HDFC Mutual Fund2.5
SUDHA GOPALAKRISHNAN2.2
ICICI Prudential Mutual Fund1.9
GOVERNMENT OF SINGAPORE1.6
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD1.5
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND1.5
ROHAN MURTY1.4
VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUND1.3
GOVERNMENT PENSION FUND GLOBAL1.2
UTI Mutual Fund1.2
ABU DHABI INVESTMENT AUTHORITY1.0

% held by Top 14 shareholders 43.9%

SECTION 4 TODAY'S BULLISH SIGNALS

4.1 Rank in the top 8% by Relative Valuation in the Indian market

DescriptionValueRank
EV/EBITDA24.7In Top 8%

4.2 Uptrend

Price/Moving Average Price of 1.25:

- The price to 200-day MAP ratio is 1.25, a bullish indicator. In the past 200 days this ratio has exceeded 1.25, 142 times suggesting further upside. The 50-day MAP of Rs1,282.93 is higher than the 200-day MAP of Rs1,020.61, a bullish indicator. The 200-day MAP has increased to Rs1,020.61. An increase is another bullish indicator.

Past Quarter:

- In the last three months the stock has hit a new 52-week high twelve times, pointing to a significant uptrend.

4.3 Other Bullish Signals

- Total Liabilities/EBITDA of 1.2 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.

- Net profit margin has averaged 19.6% in the last 3 years. This is considered superior and suggests a high margin of safety.

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 Past four-years

- Infosys rose for a fourth consecutive year. In the past four years it has risen Rs827.26 (185.0%).

5.2 Rank in the top 2% by Size in the Indian market

DescriptionValueRank
MCap$75.1 billionIn Top 1%
Ave daily TurnoverRs13.2 billion ($182 million)In Top 1%
Annual RevenueRs907.9 billion ($12.6 billion)In Top 2%

5.3 Rank in the top 21% by Performance in the Indian market

DescriptionValueRank
Net Profit Margin %18.3In Top 18%
EBITDA Margin %24.2In Top 21%

5.4 Rank in the top 6% by Productivity in the Indian market

DescriptionValueRank
Return on Capital Employed [ROCE] %30.6In Top 5%
Return on Assets [ROA] %17.9In Top 5%
Return on Equity [ROE] %25.3In Top 6%

5.5 Present Value of Rs1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVRs1000 > 1,141

PVRs1,0003 mo ago1 yr ago3 yrs ago
INFY.NSERs1,142Rs1,676Rs2,656
It Consulting & Software sectorRs1,125Rs1,476Rs1,866
BSE SENSEX IndexRs1,167Rs1,267Rs1,495

5.6 The Best Periods [1 Yr, 3 Yrs] with Price Change % > 63.4

3-Year price change of 141.6% for Infosys outperformed the change of 49.5% in the BSE SENSEX index for a relative price change of 92.1%.

Price Change %Year3 Years
Infosys63.5141.6
IT Consulting & Software sector48.886.6
BSE SENSEX index26.449.5

5.7 Moving Annual Return of 66.3% in the past year:

Moving Annual Return was 66.3% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 26.6%. The Moving Annual Return has been positive in 4 of the last 5 years.

INFYClose (INR)Dividends (INR)Capital Gain / (Loss) %% YieldAnnual Return %
Feb 251,274.5521.563.52.866.3
1 Yr ago779.3118.511.62.614.2
2 Yrs ago698.5926.2532.4537.4
3 Yrs ago527.4913.8817.93.121.0
4 Yrs ago447.2912.62(8.3)2.6(5.7)

Close 5 years ago Rs487.96

Prices are adjusted for a bonus share. On September 04, 2018 shareholders received 1 additional share for every 1 share held prior to that date.

5.8 MCap: 5-Year Increase of Rs2,844 billion [$39 billion]

In the past 5 years Market Capitalization has increased by Rs2,843.9 billion (110%) from Rs2,584.9 billion to Rs5,428.8 billion. Based on a dynamic start date of 5 years ago, there has been only 1 decline in MCap over the last 5 years.

PriceMCap (INR B)MCap ($ B)
LastRs1,274.555,428.875.1
1 Year agoRs779.313,399.947.3
2 Years agoRs698.593,210.745.1
3 Years agoRs527.492,523.938.8
4 Years agoRs447.292,305.934.4
5 Years agoRs487.962,584.937.7

5.9 Sequential growth in EPS [Q2/2020 vs Q1/2020] of 14.4%:

The most recent quarter (Q2/2020) showed a rise of 14.4% in sequential growth of Quarterly EPS.
Quarterly ReportEPS (Rs)Growth %
Q2/202011.4214.4
Q1/20209.98-2.1

5.10 EPS growth [FY2020 vs FY2019] of 10.0%:

FYEPS (Rs)Growth %
202038.9710.0
201935.44-0.3

5.11 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 16.6%

TSR %1 yr3 yrs5 yrs10 yrs20 yrs
INFY.NSE67.63824.917.516.7

5.12 % Growth in EPS & RPS

EPS growth: PCP EPS growth (Q2 2020 vs Q2 2019) was up 20.7%. FY EPS growth (FY2020 vs FY2019) was up 10.0%.

RPS growth: PCP growth in Revenue per share (Q2 2020 vs Q2 2019) was up 8.8%. FY growth in Revenue per share (FY2020 vs FY2019) was up 12.1%.

(All figures in %)

PCP growth in EPS (Q2 2020 vs Q2 2019)20.7
PCP growth in RPS (Q2 2020 vs Q2 2019)8.8
FY growth in EPS (FY2020 vs FY2019)10.0
FY growth in RPS (FY2020 vs FY2019)12.1

5.13 Increased Volume, up 207% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 206.9% to 12.2 million shares.

Avg. Daily Volume Traded 12 months ended Feb 25, million shares

YearADVT
202112.2
20209.4
20196.5
20185.3
20174.0

5.14 Increased VWAP, up 97% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 97.4% to Rs925.11. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

Past five years, 12 months ended Feb 25 (INR)

YearHigh PriceVWAPLow Price
20211384.7925.11497.07
2020816.47711.68600.39
2019734.04613.39503.0
2018557.34441.54387.14
2017554.72468.57399.47

5.15 Increased share turnover, up 196% in 5 years

In the past five years, average daily share turnover has increased 195.7% to Rs10.7 billion ($148.4 million). This suggests increased liquidity.

Past five years, 12 months ended Feb 25 (INR billion)

YearAverage Daily Turnover
202110.7
20206.5
20195.4
20184.7
20173.6

5.16 Quarterly Trend in Revenue, Net Profit and Net Profit Margin:

- Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Sep 20 [Q2 vs Q1]1.814.519.8
Jun 20 [Q1 vs Q4]--217.7

5.17 Satisfies one criteria of Benjamin Graham

-"Total debt less than tangible book value"; total debt of INR6.2 billion (US$83 million) is less than tangible book value of INR544.9 billion (US$7.3 billion).-"Current ratio of two or more"; current assets are 2.6 times current liabilities.

5.18 Satisfies 5 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

- Reduction in total shares on issue.

- Improvement in asset turnover [growth in revenue of 9.8% exceeded growth in assets of 9.5%].

SECTION 6 TODAY'S BEARISH SIGNALS

6.1 Momentum Down 0.5% Past Week

The price ranged between a low of Rs1,265.20 on Feb 22 and a high of Rs1,292.45 on Feb 18.

FebInfosysClose price [INR]Price change %Relative change % *Comment
Thu 18Strengthens above moving average price1,292.450.91.6Week-high of 1,292.45; Top Rise
Fri 19Falls in 4 out of last 5 days; 5-day fall of 1.4%1,291.3-0.10.8
Mon 22Drops a 21-day low1,265.2-2.00.2Week-low of 1,265.2; Steepest Fall
Tue 23Increases Rs1.151,266.350.10.1Price/MAP200 above 1 and rising
Wed 24Strengthens above moving average price1,274.30.6-1.4Price/MAP200 above 1 and rising

* Relative change is price change of stock with respect to Benchmark Index, BSE SENSEX index.

6.2 Rank in the bottom 23% by Relative Valuation in the Indian market

DescriptionValueRank
Price/Earnings32.7In Bottom 23%
Price to Sales6In Bottom 13%
Price/Earnings/Growth3.28In Bottom 11%
Price to Book Value10In Bottom 4%
P/E * P/NTA325.79In Bottom 3%

6.3 Downtrend

Negative MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 1,282.46 minus the 26-day EMA of 1,284.81 is negative, suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

Past Quarter:

The Worst 3 weeks in the past quarter

The past month witnessed the worst 2 weeks in the past quarter. In the past quarter the steepest fall of 7.6% took place in the week beginning Monday January 25.

Mon-FriChange %BSE SENSEX index Change %RPC %Vol Ind [1 is avg]
Jan 25-29-7.6-5.3-2.30.7
Feb 15-19-1.4-1.3-0.10.5
Jan 18-22-0.3-0.300.7

6.4 Overvaluation

Earnings Yield of 3.1% < Indian ave of 7.5% < Bond Yield of 6.1%:

- Earnings yield of 3.1% is less than the Indian average earning yield of 7.5%.

- The earnings yield of 3.1% is below the 10-year bond yield of 6.1%.

(All figures in %)

Earnings Yield3.1
Indian avg7.5
Dividend Yield1.7
Bond Yield6.1

Price/Sales of 6.0 > sector avg of 1.4:

- Price/Sales of 6.0 versus sector average of 1.4 and market average of 0.5.

Price to Book of 10 > Sector average of 1.9:

- The Price to Book of 10 is higher than average of 1.9 for the It Consulting & Software sector.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 5.9. Compared with the rest of the market the stock is overvalued and ranks in the bottom 5% of stocks by value of Q Ratio.

SECTION 7 ONGOING BEARISH PARAMETERS

7.1 Rank in the bottom 16% by Growth in the Indian market

DescriptionValueRank
EPS Growth %10In Bottom 16%

7.2 Total Shares on Issue: 5-Year Increase of 86.3%

In the past 5 years total shares on issue have increased by 2 billion (86.3%) from 2.3 billion to 4.3 billion. Buybacks have averaged 42.2 million shares [1.8%] per financial year. Based on a dynamic start date of 5 years ago, there have been declines in issued capital in 2 out of 5 years. An increase in total shares on issue is an unfavourable indicator in Joseph Piotroski's 9 indicators.

Year End (Mar 31)Total Shares on Issue
20204,257,754,522
20194,347,130,157
20184,510,664,644
20172,285,639,447
20162,285,616,160
20152,285,610,264

7.3 P/E/G > 1

The price earnings ratio of 32.7 divided by trailing twelve months eps growth of 10.0% corresponds to P/E/G of 3.3 times.

EPS Growth (%)9.96
P/E/G3.28
P/E32.71

SECTION 8 PATENTS

EXCEL TABLES ARE AVAILABLE TO EXPORT AS FOLLOWS:

PATENTS - CATEGORISED LIST OF 5-YEAR HISTORY OF 181 [INCLUDING IN CURRENT WEEK]:

http://www.buysellsignals.net/BuySellSignals/report/India/Stock/PDF/quarterly/xls/INFY_History_Patents.xls

SECTION 9 FINANCIALS

EXCEL TABLES ARE AVAILABLE TO EXPORT AS FOLLOWS:

Financials Q2 2020, FY 2020, Past 10 Years

http://www.buysellsignals.net/BuySellSignals/report/India/Stock/PDF/quarterly/xls/INFY_Financials.xls

SECTION 10 PEER GROUP ANALYSIS & RANKING

10.1 Global Peer Group (all figures in $): Key Financials

In its Global Peer Group of 9 companies INFY is ranked third by Revenue, Net Profit, fourth by Relative Str. (6 mo), PV $1000 (1 yr) and fifth by MCap, Total Assets.

Name (Code)Relative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Rank of INFY454335
Infosys (INFY)6675.1B1,665.312.6B2.3B12.8B
Booking Holdings (BKNG)6996.2B1,192.315.1B4.9B21.4B
MercadoLibre (MELI)7788.9B2,408.92.3B(172M)4.8B
Xiaomi (01810)8187.2B2,134.927.1B2.1B22.5B
NetEase (09999)5980.4B
Autodesk (ADSK)5765.3B1,440.53.3B214.5M6.2B
VMware Class A (VMW)3760.6B950.510.8B6.4B26.3B
Dassault Systemes (DSY)5955.7B1,335.75.4B596.4M15.7B
Veeva Systems (VEEV)4948.1B1,889.4862.2M229.8M1.7B

Global Peer Group: Relative Value Indicators

INFY is ranked second by P/S, fourth by P/E and seventh by Turnover Rate.

Name (Code)Country CodeLast PriceP/EP/STurnover Rate (%)% Disc to 52-w Hi
Rank of INFY427
Infosys (INFY)INRs1,274.5532.76.047.88.0
Booking Holdings (BKNG)US$2,443.5021.66.6220.70.3
MercadoLibre (MELI)US$1,714.037.1157.315.2
Xiaomi (01810)HKHKD26.8527.8130.421.7
NetEase (09999)HKHKD181.80
Autodesk (ADSK)US$298.9117.9142.26.9
VMware Class A (VMW)US$146.769.65.784.99.4
Dassault Systemes (DSY)FREUR173.4087.510.427.08.3
Veeva Systems (VEEV)US$291.14119.810.6

10.2 BuySellSignals Fundamentals Valuation Ranking: Infosys vs Indian Market

Out of 3,020 stocks in the Indian Market, Infosys is ranked twelfth by Net Profit $, 260th by Yield, 291st by Total Debt/Equity and 449th by P/Earnings/ Growth.

Indian AvgINFYRankRank 1Rank 2Rank 3Lowest Rank
Net Profit $65.6 M2.3 B12179.2 B NBIFIN74 B Polyspin Exports8.3 B TATASTEEL
Yield (%)1.21.726019.4 POLYPLEX18.8 PNBGILTS18.1 UFO0.01 TASTYBITE
Total Debt/Equity (the lower the better)4.998x0.01x291Lakshmi Automatic Loom WorksBNK Capital MarketsAuthum Investment & Infrastucture11.8x Artson Engineering
P/Earnings/ Growth-3.3x4490.1x COSMOFILMS0.1x SRHHYPOLTD0.1x WELSPUNIND-
EBITDA Margin%10.424.255389.1 SILINV87.98 POWERGRID87.9 PODDARMENT(89.7) ANDHRACEMT
P/Earnings13.4x32.7x11421.6x SADBHAV1.6x Garg Furnace1.8x JPASSOCIAT-
Premium to 52-Wk Low (%)105.8156.420720.4 CONTINENTAL CHEMICALS0.9 Triveni Enterprises1.4 Tamilnadu Steel Tubes4987.9 MAJESCO
Price/Net Tangible Assets0.1x9.96x23980.1x Ugro Capital0.1x Available Finance0.1x Choksi Imaging-
Discount to 52-Wk High (%)1.77.95257690.7 A & M Febcon89.5 Siddha Ventures88.7 SHRENIK0.1 Fredun Pharmaceuticals

Negative values are shown in brackets.

10.3 Market Share

Infosys vs It Consulting & Software sector [It Consulting & Software sector Total in Brackets]

Revenue of Rs907.9 billion ($12.6 billion)[5.1% of aggregate sector revenue of Rs17,978 billion; down from 5.1% in the previous year.]

10.4 Share in Index

Infosys is a constituent of the following indices. Its market capitalisation accounts for 23.5% of the combined MCap of the BSE Information Technology Index.

Index NameMCap of Index ($ B)MCap as % of Index
BSE Information Technology Index319 23.5
CNX IT Index327 23.0
BSE Teck Index395 19.0
CNX Service Sector Index901 8.3
BSE SENSEX Index1,345 5.6
Nifty Index1,608 4.7
CNX 100 Index1,897 4.0
BSE 100 Index1,971 3.8
BSE 200 Index2,320 3.2
S&P CNX 500 Index2,357 3.2
BSE 500 Index2,531 3.0

10.5 Global Rank [out of 47,998 stocks] and Rank of Infosys in the Asia Region [out of 24,244 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap ($)75.1B24249
Total Assets ($)12.8B2,527955
Revenue ($)12.6B1,157413
Net Profit ($)2.3B520137
Return on Equity %25.32,117858
Net Profit Margin %18.36,1162,930
Price to Book10.031,70120,039
Price/Earnings32.715,90610,005
Yield %1.713,3786,976
PV1000 (1Year) $*1,6659,8314,419
$* Change (1Year) %63.010,0334,527

* 1 year ago $1 = INR 71.89

Feb 25, 2021: $ 1 equals INR 72.32

10.6 Rank of Infosys in the BSE SENSEX Index [out of 30 stocks], in the Total Indian Market [out of 3614 stocks] and in the IT consulting & software sector [out of 67 stocks]

DescriptionValueIn BSE SENSEX IndexIn Total Indian MarketIn IT consulting & software sector
Total Assets (Rs)927.7B14743
Revenue (Rs)907.9B6213
Return on Equity %25.351699
Net Profit Margin %18.363907
Price to Book10.0183,07758
Price/Earnings32.7151,31329
Yield %1.7926710
PV1000 (1Year) INR1,676292624

10.7 Long-Term Fundamental Ranking: 4 out of 5 [5 is best]

Infosys is ranked number 2 out of 99 listed it consulting & software companies in the India with a market capitalization of Rs5,428.8 billion ($75.1 billion).

In the it consulting & software companies it has the 3rd highest total assets and 3rd highest revenues.

Within its sector it has a relatively moderate Price/Sales of 6.

It has a strong relative ROE of 25.3% and ROA of 17.9%. The company paid a dividend of Rs9.50 in the last twelve months. The dividend yield is high at 1.7%. Finally, its earnings growth in the past 12 months has been a comparatively high 10%.

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 11 NEWS ARCHIVES (JUN 2019 - NOV 2020)

HTML PAGES ARE AVAILABLE TO EXPORT AS FOLLOWS:

http://www.buysellsignals.net/BuySellSignals/report/India/Stock/Daily/Html/INFY_Corporate_Wire.html

SECTION 12 CURRENCY SYNOPSIS: INDIAN RUPEES (INR)

12.1 % Change of USD vs Currency Basket Period-Based

In the past year the US Dollars rose 0.4% against the Indian Rupee; in the past three years the US Dollars rose 11.6% against the Indian Rupee.

LastCountry1-day %1-week %1-Year %3-Yrs %
USD1=72.346INRIndia-0.1-0.60.411.6
USD1=1.0USDUnited States Of America0.0---
USD1=105.867JPYJapan0.6--4.4-0.9
USD1=8.38NOKNorway-1.0-1.4-10.46.8
USD1=1.256AUDAustralia-0.6-2.7-17.1-1.6
USD1=1.319SGDSingapore-0.1-0.7-5.8-0.1
USD1=0.707GBPUnited Kingdom-0.2-1.9-8.6-1.2
USD1=1.343NZDNew Zealand-1.4-3.5-14.9-2.1
USD1=0.907CHFSwitzerland0.20.9-7.4-3.1
USD1=8.275SEKSweden-0.1-0.6-15.01.3
USD1=0.822EUREuropean Union-0.2-1.0-10.91.1
USD1=7.755HKDHong Kong---0.5-0.9
USD1=1,107.692KRWSouth Korea-0.20.1-9.12.9
USD1=1.251CADCanada-0.6-1.5-5.8-0.9
USD1=20.389MXNMexico-0.70.87.19.9
USD1=6.457CNYChina-0.1--8.11.9

12.2 % Change of INR vs Currency Basket Period-Based

In the past year the Indian Rupee fell 5.5% against the Japanese Yen; in the past three years the Indian Rupee fell 11.0% against the Japanese Yen.

LastCountry1-day %1-week %1-Year %3-Yrs %
INR1=1.463JPYJapan0.70.4-5.5-11.0
INR1=0.117NOKNorway-0.60.2-10.6-3.5
INR1=0.017AUDAustralia--1.5-17.2-11.3
INR1=0.018SGDSingapore0.2--6.4-10.3
INR1=0.01GBPUnited Kingdom-0.2-1.4-9.4-11.4
INR1=0.013CHFSwitzerland1.02.1-8.0-12.9
INR1=0.019NZDNew Zealand-0.7-2.0-15.0-11.4
INR1=0.115SEKSweden0.20.3-15.7-8.8
INR1=0.011EUREuropean Union0.1-0.2-11.6-9.2
INR1=0.107HKDHong Kong0.30.6-1.1-11.1
INR1=15.327KRWSouth Korea-0.20.7-9.6-7.6
INR1=0.017CADCanada-0.1-0.4-6.0-10.9
INR1=0.014USDUnited States Of America0.20.6-0.6-10.3
INR1=0.282MXNMexico-1.51.26.0-1.3
INR1=0.089CNYChina-0.5-8.8-8.6

SECTION 13 HISTORICAL PERSPECTIVE

Year-on-Year Comparison USD/INR (Trailing year - ended 24 Feb)

In the past 5 years, the USD/INR has jumped 5.5% from 68.57 to 72.35, an average compound annual appreciation of the USD by 1.1%.

202120202019201820172016
Close72.3572.0371.0564.8366.6468.57
% Change0.41.49.6-2.7-2.811.4
Range66.07 - 68.8667.56 - 68.78

USD1 buys INR 72.35 today: Appreciation of USD from 36.54 v/s INR twenty five years ago

Last5 Yrs ago10 Yrs ago15 Yrs ago20 Yrs ago25 Yrs ago
USD/INR72.3568.5845.8644.3746.5136.54

Present Value of Rs1000 Invested in USD 20 years ago is Rs1,556

PVRs1,0005 yrs ago10 yrs ago20 yrs ago
USD/INRRs1,055Rs1,578Rs1,556

SECTION 14 MACROECONOMIC INDICATORS

INDICATORUNITED STATES[USD]INDIA[INR]
GDP (Billion USD)21,4332,869
GDP growth yoy (%)-2.5-7.5
Interest rate (%)0.254.0
Inflation rate (%)1.44.06
Unemployment rate (%)6.36.5
Budget / (Deficit) to GDP ratio (%)(4.6)(9.5)
Current account / (Deficit) to GDP ratio (%)(2.3)(0.9)
Debt to GDP ratio (%)107.669.62

SECTION 15 CREDIT RATING SUMMARY

India:

Rating AgencyLong TermForeign CurrencyDescription
Moody'sBaa2
S&PBBB-Considered lowest investment grade by market participants. The minus (-) sign shows relative standing within the major rating category.
FITCHBBB-Good credit quality: 'BBB' ratings indicate that expectations of default risk are currently low. The minus (-) sign shows relative standing within the major rating category.
DAGONGBBBMedium Credit Quality: "BBB" ratings indicate that expectations of default risk are currently low and it has BBB medium default risk. In normal conditions, the capacity for payment of financial commitments is considered adequate, whereas under adverse business or economic conditions risks of default are more likely to exist under this scale.

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PCP: Previous Corresponding Period

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Total Liabilities/Total Assets: Total Liabilities/Total Assets

Turnover Rate: value of annual trading volume as a percentage of market capitalisation

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Created by www.buysellsignals.com