Check Before You Invest : Infosys Ltd

BSE: 500209 NSE: INFY ISIN: INE009A01021

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Infosys Ltd belong to?

Infosys Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Infosys Ltd a good quality company?

Infosys Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Infosys Ltd undervalued or overvalued?

Infosys Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Infosys Ltd a good buy now?

Infosys Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Infosys Ltd?

Infosys Ltd revenue growth is 9.6% for FY-2026, which is below its 5-year CAGR of 12.2%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Infosys Ltd?

Infosys Ltd Return on capital employed is 42.84% for FY-2026, which is in line with its 5-year historical median of 42.84%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Infosys Ltd?

Infosys Ltd Return on Asset is 19.55%, which is in line with its 5-year historical median of 19.78%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Infosys Ltd?

Infosys Ltd Return on equity is 31.68% for FY-2026, which is in line with its 5-year historical median of 31.68%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Infosys Ltd?

Infosys Ltd Cash conversion cycle is 52 days, in line with its 5-year historical median of 50 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.19	1.17
ROE	31.68	31.68
ROCE	42.84	42.84
Cash Conversion Cycle	52 days	50 days

Q.6 Gross Profit margin of Infosys Ltd?

Infosys Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.9% for FY-2026, which is in line with its 5-year median of 26%, indicating stable margins.

Q.7 Operating Profit Margin of Infosys Ltd?

Infosys Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.57% for FY-2026, which is in line with its 5-year median of 23.94% indicating stable margins.

Q.8 Net Profit Margin of Infosys Ltd?

Infosys Ltd Net Profit Margin is 16.5% for FY-2026, is in line with with its 5-year median of 16.5%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	25.9	26
Operating Profit Margin	23.57	23.94
Net Profit Margin	16.5	16.5

Q.9 Debt to Equity ratio of Infosys Ltd?

Infosys Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Infosys Ltd?

Infosys Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Infosys Ltd?

Promoters hold 14.38% of the Infosys Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Infosys Ltd vs industry peers?

Infosys Ltd revenue CAGR is 12.20%, compared to the industry median CAGR of 10.42%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9.6	10.4
Gross Profit Growth	8.9	9.1
Operating Profit Growth	1.9	7.8
Net Profit Growth	10.2	8.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.19	1.19
ROE	31.68	26.31
ROCE	42.84	33.99
Cash Conversion Cycle (days)	51.91	43

Valuation & price assessment

Q.1 Stock return of Infosys Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 7.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	7.1%	-2.9%	-2.2%	-22.1%

Q.3 Valuation ratios of Infosys Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	16.22	27.17	47.37
Price to Book	5.23	7.41	2.63
Price to Sales	2.67	4.07	4.79
EV to EBITDA	9.77	15.10	16.48

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