Infosys Equity Report
Autor: jassis • September 20, 2018 • Case Study • 4,023 Words (17 Pages) • 426 Views
INFOSYS LIMITED[pic 1]
Current Market Price: INR 1365.75 Target Market Price: INR 1845.34 Recommendation - BUY
Figure 1: Summary of Market
Figure 2: Shareholding Pattern
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Market Data | |
Ticker Symbol | NSE – INFY BSE – 500209 |
Closing Price | INR 1365.75 |
Avg. Daily Vol. | 274,644 |
Shares O/S | 18.84 cr |
52 Week High-Low | Rs.1393.80/Rs.860.00 |
Market Cap. (in cr.) | 297936.80 cr |
Beta | 0.76 |
P / E | 19.24 |
Enterprise Value (2018) | 230982.96 cr |
EV / EBITDA (2018) | 10.84 |
Figure 3: Share Price Performance
INFY NIFTY NIFTYIT[pic 3][pic 4][pic 5]
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Executive Summary
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Infosys Limited (formerly Infosys Technologies Limited) is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. It has its headquarters in Bengaluru, Karnataka, India.
Infosys is the second-largest Indian IT company by 2017 revenues and 596th largest public company in the world in terms of revenue. On August 3, 2018 its market capitalisation was INR 297936.80 Cr. The credit rating of the company is A- (rating by Standard & Poor's).
Investment Recommendation
We issue a Buy recommendation on Infosys Limited with a target price of INR 1845.34 at the end of August 2019 with a upside of almost 36% from the current market price of INR 1365.75. The target price is calculated using-: FCFE model to arrive at an intrinsic valuation price of share. The recommendation is guided by:
Investment Methodology and Outline
The technology sector is an inescapably huge investment opportunity for both corporate India and Dalal Street. It is the largest single segment of the market, eclipsing all others (including the financial sector and the industrials sector). More than anything, technology companies are associated with innovation and invention. Investors expect considerable expenditures on research and development by technology companies, but also a steady stream of growth fueled by a pipeline of innovative new products, services and features. After analyzing the investment risks and industry parameters, we arrived at Buy recommendation.
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