Infosys Ltd (Infy) is one of the leading IT players catering to BFSI, retail, communication, manufacturing & hi tech verticals.
Infosys reported weak revenue numbers in Q4FY23.
Infy’s share price has grown by ~2.5x over the past five years (from ~₹ 564 in April 2018 to ~₹ 1,388 levels in April 2023).
We value Infosys at ₹ 1,600 i.e., 22x P/E on FY25E EPS.
Besides Infosys, in our IT coverage we also like TCS.
|5 year CAGR (FY18-23)
|2 year CAGR (FY23-25E)
|EBITDA Margins (%)
|Revenue growth was impacted due to unexpected ramp down by clients, projects cancellation and one time impact
|Gross margin (%)
|Selling & marketing costs
|EBITDA Margin (%)
|EBIT Margin (%)
|EBIT margin declined due to the following headwinds: i) -70 bps drop in utilization & ii) -90 bps impact of one time impact of revenue decline mitigated by the tailwinds of i) +50 bps cost optimization & lower subcon cost & ii) +60 bps benefit on post sale customer support
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