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Infosys Limited
  Summary Sheet     Detailed Review     Background     Buy/Sell?     Financial Analysis     Compare     StockSelect  

   Summary Sheet
 Market Info
BSE Symbol
500209
NSE Symbol
INFY
Price (Rs)
2,779.95 ( 0.96%)
Mkt. Cap (Rs m)
1,596,213
Forward P/E (x)
21.5
Volume ('000)
75.1
Div Yield (%)
2.2
Price information as on : Feb 3, 2012. Forward P/E and Div. Yield: FY12E

  
 Financial Snapshot
Year End FY09 FY10 FY11 FY12E FY13E FY14E
Sales growth (%) 30.0 4.8 20.9 17.2 10.8 18.9
Net Profit Growth (%) NA 4.6 9.1 8.6 11.5 23.9
NPM (%) 27.6 27.6 24.9 23.0 23.2 24.1
FDEPS 104.4 109.2 119.4 129.3 144.1 178.6
PER 26.6 25.5 23.3 21.5 19.3 15.6
PCF 23.6 22.1 20.8 19.1 17.2 13.9

  
 Investment Rationale
Reasons to Buy Reasons not to Buy
  • Long term story is promising
  • 'Cloud computing' - The next big thing
  • Offering end-to-end solutions is the key
  • New initiatives to drive future growth
  • BPO represents huge opportunity
  • Managerial excellence
  • Currency risks
  • Managing a huge workforce
  • Delay in spending decisions


  •   
     Background
    Parameter Comments
    Management Visionary, proactive and ethical. Has consistently outperformed the sector.
    Industry growth Move towards offshoring of services growing at a strong pace. But backlash could hamper growth in the near-term.
    Co.standing Trendsetter in the sector. Moving towards becoming an end-to-end software services provider.
    Entry barriers Management skills, scale and domain expertise.
    Competition High. Competition is more global.

    Infosys has come to be the gold standard in the Indian IT industry's success. From humble beginnings in 1981, the company today is the second largest exporter of software services from the country. It is known globally for its world-class management practices and work ethics. It has been making conscious and constant efforts to move up the software value chain and offers services like software development, maintenance, technology consulting, testing and package implementation. Infosys offers all these services through its highly integrated and widely acclaimed global delivery model. The company’s revenues and profits have grown at average annual rates of 23.6% and 22.7% respectively during the last five years (FY06-FY11).


      
     Views on News
  • Infosys: Rupee depreciation saves the day
    (Jan 12, 2012)
  • Infosys: Volumes & rupee drive gains
    (Oct 12, 2011)
  • Infosys: Research Meet Extracts
    (Sep 7, 2011)
  • Are investors overcautious on Infosys?
    (Aug 23, 2011)
  • Infosys: Disappoints on profit front
    (Jul 12, 2011)
  • More Views on News
     Stock Graph
    One-year comparative graph with BSE
    INFOSYS LTDBSE SENSEX
    DETAILED QUOTES | UNDERSTAND GRAPHS

    Research report last updated on: 1 Dec, 2011

    Disclosure: The analyst and dependent family members do not hold shares in this Company. Please read Equitymaster Share Trading Guidelines.

    This is a sample Research Report from Equitymaster. The Research Report service gives you analysis and 3-year forward projections on India's top 100 companies. Please click here to subscribe to this service

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