Infosys (INFY:Rs756.60) in top 1% performers of BSE SENSEX Index in past week 02 July 2020

NEWS BITES - BRIC

Dateline: Thursday July 02, 2020

Infosys Ltd. (NSE:INFY), India's 2nd largest IT consulting & software company by market cap, has climbed Rs56.10 (or 8.0%) in the past week to close at Rs756.60 on Thursday. This makes Infosys stock the highest performer in the BSE SENSEX Index of 30 stocks which was up 2.9% in the past week. This also indicates a relative price increase of 5.1%. The volume was 1.3 times average trading per week of 52,428,480 shares. There were 70,389,591 shares worth Rs52.2 billion (US$692.1 million) traded in the past week. In the past week the market cap has risen Rs238.9 billion (US$3.2 billion).

Bearish Turning Point

Williams % R

The stock is overbought according to the Williams % R indicator of -11.0, suggesting the price is close to its 14-day high. The Williams % R was previously -25.9.

Stock Summary (traded in INR)

Currency1 USD = 75.49 INRSectorIT Consulting & Software
Jul 02 closeRs756.60Shares Outstanding4,258,662,140
Ave Daily Volume10,485,696 shares% Held by 22 Promoters & Promoter Group13.2%
52-Week Range502.41 - 825.24% Held by 919,009 Public shareholders86.4%
P/E21.4Market CapRs3,222.1 billion [USD42.7 billion]
Dividend Yield2.3%EPS Growth (FY2019 vs FY2018)-0.3%

ADR Summary (traded in USD)

Home ExchangeIndia% of shares outstanding16.9%
CodeINFYRatio2 ADRs equals 1 ordinary share
ISINUS4567881085TypeSponsored
CUSIP456788108Jul 01 closeUSD9.68
*No. Held by Institutions720,297,363Ave Daily Volume14,165,023 ADRs
Number of shares equivalent360,148,68252-Week Range6.76 - 11.93

*Total ADRs Held by Institutions 720,297,363; equivalent to 360,148,682 Infosys Technologies shares on issue. This represents 16.9% of total shares on issue.

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

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
National Stock ExchangeINFYINR756.610,002,13297.01.7
Bombay Stock Exchange500209INR756.3493,2613.01.1
Total100.00

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

Financials Summary: EPS down 0.3% to Rs35.44 in FY2019

+ Net profit was down 3.9% from USD2.1 billion in FY2018 to USD2 billion in FY2019.

+ Earnings Per Share (EPS) was down 0.3% from Rs35.53 in FY2018 to Rs35.44 in FY2019.

Year ended MarFY2019FY2018FY2017
Sales (USD B)11.39.89.5
Pretax (USD B)2.82.72.6
Net (USD B)22.11.9
EPS (INR)35.4435.5331.385

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INDEX

SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile and Independent Ratings

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

Click here to view the following

SECTION 7 Patents

SECTION 8 Tax & Dividend

SECTION 9 Financials FY 2019

SECTION 10 Peer Group Analysis & Ranking

SECTION 11 News Archives (Aug 2019 - Mar 2020)

Glossary

SECTION 1 News In The Past Quarter

1.1 Dividends

May 16: Infosys announces dividend

Infosys today announced a final dividend of Rs9.50 per share. The ex-dividend date is Friday, May 29 and the record date is Monday, June 01, 2020.

1.2 Share Capital

June 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 June 23, 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 June 23, 2020.

Source: National Stock Exchange of India

May 27: 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 May 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 May 28, 2020.

Source: National Stock Exchange of India

1.3 Press Releases

June 05: Infosys: Analysts/Institutional Investor Meet/Con. Call Updates

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

Source: National Stock Exchange of India

June 02: Infosys: Analysts/Institutional Investor Meet/Con. Call Updates

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

Source: National Stock Exchange of India

April 23: Infosys: Analysts/Institutional Investor Meet/Con. Call Updates

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

Source: National Stock Exchange of India

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 Contact Details

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

2.3 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

2.4 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.

+ FT 500:

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

+ Forbes 2000:

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

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 2.5% Past Week

The price ranged between a low of 700.5 on Thursday, Jun 25 and a high of 748.2 on Friday, Jun 26.

DayInfosysClose price [INR]Price change %Relative change %Comment
WednesdayDecreases on slipping relative strength731.9-0.6-2.0Price fall on falling relative strength
TuesdayRises with rising open interest735.950.60.7Price rise on rising relative strength
MondayLoses Rs70 billion (US$927 million) in MCap, steepest heavyweight fall in IT consulting & software sector731.75-2.2-1.6Steepest Fall
FridayIn top 1% performers of BSE SENSEX Index748.26.85.9Week-high of 748.2 Top Rise; VI*=2.6
ThursdayIn bottom 2% performers of BSE SENSEX Index700.5-1.9-1.8VI*=1.5

[Volume Index (VI); 1 is average]

3.2 Momentum Up 6.8% Past Month

In the past quarter the week beginning Monday May 18 saw the highest weekly rise of 6.1% for a relative price increase of 7.5%.

The Best 3 weeks in the past quarter:

Mon-FriChange %BSE SENSEX index Change %RPC %Vol Ind [1 is avg]
May 18-226.1-1.47.50.8
Jun 22-2661.34.81.4
Apr 20-244.7-0.85.51.1

3.3 Rank in the top 24% by Price Performance in the Indian market

DescriptionValueRank
1-week Price Change %8.0In Top 24%

3.4 Rising open interest with rising price

Open Interest Trend

Same day trend: The price lifted 3.4% from Rs731.90 to Rs756.60; Open interest has lifted 2.8% from 62,733,600 to 64,512,000. A price rise combined with an increase in open interest suggests there is new money coming into the market from existing or new buyers. This is a bullish signal.

DurationOpen Interest change %Price change %Interpretation
1-day2.83.4Strong Market

3.5 Top three traded call options [1 contract is 1200 shares]

Exercise PriceExercise DateOption PriceChange %Contracts Traded
Rs800.0July 30, 2020Rs10.5057.93241
Rs760.0July 30, 2020Rs24.7556.22617
Rs750.0July 30, 2020Rs29.7551.81999

3.6 Uptrend

Today's Volatility:

Today its volatility (highest price minus lowest price/lowest price) of 4.1% was 1.5 times the average daily volatility of 2.7%, up from 1.7% on Wednesday and 2.0% on Tuesday. A rise in the price on high volatility is a bullish signal.

Price/Moving Average Price of 1.06 and positive MACD:

- The price to 200-day MAP ratio is 1.06, a bullish indicator. In the past 200 days this ratio has exceeded 1.06, 27 times suggesting further upside. The stock is trading above both its MAPs at Rs715.31 for the 200-day MAP and Rs689.27 for the 50-day MAP, a bullish indicator. The 200-day MAP has increased to Rs715.31. An increase is another bullish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 726.13 minus the 26-day EMA of 711.41 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

- The price to 50-day EMAP ratio is 1.1, a bullish indicator. The 50-day EMAP has increased to Rs697.32. An increase is another bullish indicator.

3.7 Undervaluation

Earnings Yield of 4.7% > Indian ave of 3.3% < Bond Yield of 5.8%:

- Earnings yield of 4.7% is greater than the Indian average earning yield of 3.3%.

- The earnings yield of 4.7% is below the 10-year bond yield of 5.8%.

(All figures in %)

Earnings Yield4.7
Indian avg3.3
Dividend Yield2.3
Bond Yield5.8

3.8 Other Bullish Signals

- Total Liabilities/EBITDA of 0.9 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.

- Net profit margin has averaged 20.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

- As per the Du Pont analysis, Return on Equity is high at 23.7%. This is computed as net profit margin of 18.6% times asset turnover [sales/assets] of 1.0 times leverage factor [total assets/shareholders' equity] of 1.3.

SECTION 4 Ongoing Bullish Parameters

4.1 Past three-years

- Infosys rose for a third consecutive year. In the past three years it has risen Rs330.93 (77.7%).

4.2 Rank in the top 1% by Size in the Indian market

DescriptionValueRank
MCapUSD42.7 billionIn Top 1%
Ave daily TurnoverRs13.5 billion (US$178.3 million)In Top 1%
Annual RevenueRs855.6 billion (US$11.3 billion)In Top 1%

4.3 Rank in the top 20% by Performance in the Indian market

DescriptionValueRank
Net Profit Margin %18.6In Top 19%
EBITDA Margin %27.9In Top 20%

4.4 Rank in the top 7% by Productivity in the Indian market

DescriptionValueRank
Return on Assets [ROA] %18.2In Top 5%
Return on Capital Employed [ROCE] %31.8In Top 5%
Return on Equity [ROE] %23.7In Top 7%

4.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 7.6%

TSR %1 yr3 yrs5 yrs10 yrs20 yrs
INFY.NSE7.724.915.212.611.7

4.6 Present Value of Rs1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVRs1000 > 1,076

PVRs1,0003 mo ago1 yr ago3 yrs ago
INFY.NSERs1,327Rs1,077Rs1,961
It Consulting & Software sectorRs1,265Rs942Rs1,496
BSE SENSEX IndexRs1,270Rs900Rs1,159

4.7 The Best Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % > 4.8

3-Year price change of 77.7% for Infosys outperformed the change of 15.9% in the BSE SENSEX index for a relative price change of 61.8%.

Price Change %QuarterYear3 Years
Infosys30.94.977.7
IT Consulting & Software sector26.5-5.149.6
BSE SENSEX index29.9-9.715.9

4.8 Moving Annual Return of 7.4% in the past year:

Moving Annual Return was 7.4% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 17%. The Moving Annual Return has been positive in 4 of the last 5 years.

INFYClose (INR)Dividends (INR)Capital Gain / (Loss) %% YieldAnnual Return %
Jul 02756.617.54.92.47.4
1 Yr ago720.9921.516.73.520.2
2 Yrs ago617.7821.7545.15.150.2
3 Yrs ago425.6712.88(18.1)2.5(15.6)
4 Yrs ago519.8112.12202.822.8

Close 5 years ago Rs433.14

4.9 MCap: 5-Year Increase of Rs931 billion [USD12 billion]

In the past 5 years Market Capitalization has increased by Rs931.1 billion (41%) from Rs2,291 billion to Rs3,222.1 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 2 out of 5 years.

PriceMCap (INR B)MCap (US$ B)
LastRs756.603,222.142.7
1 Year agoRs720.993,232.846.9
2 Years agoRs617.782,84141.5
3 Years agoRs425.672,138.333.1
4 Years agoRs519.812,69339.9
5 Years agoRs433.142,29136

4.10 Increased Volume, up 185% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 185.2% to 10.5 million shares.

Avg. Daily Volume Traded 12 months ended Jul 02, million shares

YearADVT
202010.5
20198.1
20185.6
20174.0
20163.7

4.11 Increased VWAP, up 42% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 41.9% to Rs701.04. 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 Jul 02 (INR)

YearHigh PriceVWAPLow Price
2020825.24701.04502.41
2019742.65672.3573.15
2018633.28476.65391.3
2017530.29446.85403.76
2016560.68494.13405.03

4.12 Increased share turnover, up 103% in 5 years

In the past five years, average daily share turnover has increased 102.6% to Rs7.2 billion (US$96 million). This suggests increased liquidity.

Past five years, 12 months ended Jul 02 (INR billion)

YearAverage Daily Turnover
20207.2
20195.9
20185.3
20173.5
20163.6

4.13 Increase in Institutional Ownership up from 16.5% to 16.9% (ADRs)

As at March 31, 2020 Institutions held 16.9% of total ADRs on issue; an increase from 16.5% as at December 31, 2019.

Quarter-endDecember 31, 2019March 31, 2020
Holdings (%)16.516.9

4.14 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
Dec 19 [Q3 vs Q2]-10.3-3.420.3
Sep 19 [Q2 vs Q1]3.25.817.8
Jun 19 [Q1 vs Q3]--17.4

4.15 Satisfies two criteria of Benjamin Graham

-"Total debt less than tangible book value"; total debt of INR104.5 billion (US$1.5 billion) is less than tangible book value of INR607.8 billion (US$8.8 billion).-"Current ratio of two or more"; current assets are 2.8 times current liabilities.

-"Total debt equal or less than twice the net quick liquidation value"; total debt of INR104.5 billion (US$1.5 billion) is 0.2 times the net liquidation value of INR424.26 billion (US$6.1 billion).

SECTION 5 Today's Bearish Signals

5.1 Rank in the bottom 16% by Relative Valuation in the Indian market

DescriptionValueRank
Price to Sales3.8In Bottom 16%
P/E * P/NTA113.16In Bottom 12%
Price to Book Value5.3In Bottom 8%

5.2 Overvaluation

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 3.8. Compared with the rest of the market the stock is overvalued and ranks in the bottom 7% of stocks by value of Q Ratio.

5.3 Overbought/Bearish/Resistance Signals:

- At Rs756.60 the price has risen above the upper Bollinger band resistance of Rs751.55, indicating a downside risk for it to fall back within the band.

- The stock is overbought according to the Williams % R indicator of -11.0, suggesting the price is close to its 14-day high of Rs765.45.

SECTION 6 Ongoing Bearish Parameters

6.1 Total Shares on Issue: 5-Year Increase of 280.4%

In the past 5 years total shares on issue have increased by 3.2 billion (280.4%) from 1.1 billion to 4.3 billion. Buybacks have averaged 27.3 million shares [2.4%] per financial year. Based on a dynamic start date of 5 years ago, there has been only 1 decline in issued capital over the last 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
20194,347,130,157
20184,510,664,644
20172,285,639,447
20162,285,616,160
20152,285,610,264
20141,142,805,132

6.2 EPS growth [FY2019 vs FY2018] of -0.3%:

There have been four rises and one decline in the past 5 years. Average Annual Compounded rate of growth in EPS for the 5 years was 8.7%.

FYEPS (Rs)Growth %
201935.44-0.3
201835.5313.2
201762.776.4
201659.029.0
201554.1316.1

6.3 Satisfies 4 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Reduction in total shares on issue.

- Improvement in asset turnover [growth in revenue of 15.9% exceeded growth in assets of 6.1%].

6.4 Year-over-year (%) Change in Dividend:

Final dividend for FY 2020 was Rs9.50. The year-on-year change was down 9.5% from Rs10.50 in the previous year FY 2019.

FinalFY 2019FY 2020
Dividend (INR)10.59.5

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)

Debt/Equity: Net Debt/Net Assets %

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

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

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

Total Liabilities/Total Assets: Total Liabilities/Total Assets

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

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

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