Infosys Share Price

Infosys Limited fundamental analysis

In the heart of 1981's bustling tech aspirations, seven engineers joined forces with just $250, dreaming of creating a company that would redefine the global IT landscape.

This dream laid the foundation for Infosys, a company that started in a small apartment in Pune and soared to become a cornerstone of innovation, turning challenges into stepping stones.

From the modest beginning through the significant milestone of its IPO in 1993, which despite being undersubscribed was saved by Morgan Stanley's belief in their vision, Infosys was destined to reach greater heights.

With each passing year, Infosys not only expanded its technological horizons but also committed to sustainable practices and empowering its workforce, making it a beacon of corporate responsibility and technological prowess on the global stage.

As investors and stakeholders seek to understand the company's performance, questions like "What is Infosys share price currently?" and "What could be Infosys share price target?" naturally arise.

In this article, we’ll dive into a fundamental analysis of Infosys to understand its financial health, growth potential, and competitive position.

Infosys Limited

Infosys is an Indian multinational information technology company that offers business consulting, IT (Information technology), and outsourcing services.

It was founded in Pune in 1981 by seven software engineers and has been listed as the second biggest Indian IT company in terms of the 2024 market capitalisation after Tata Consultancy Services. It has its headquarters located in Bangalore, Karnataka, India.

Infosys covers all aspects of business and operates in multiple industries such as Financial Services, Retail, Communication, Energy, Utilities, Resources, Services, Manufacturing Hi-Tech, and Life Sciences. It has a variety of digital transformation offerings including cloud services and AI-related developments that are available to clients across over 56 countries.

Infosys has made significant contributions to digital, cloud, and AI-first transformations, and it continues to innovate in these areas.

Is the IT sector a goldmine investment?

Yes, considering the rapid development and growth of technology in the Indian subcontinent, it can be a wise investment to put money into IT firms. Over time, the Indian IT industry has experienced remarkable improvement hence making meaningful contributions to the country's GDP. For instance, it contributed 7.5% of GDP in 2023, which will increase to 10% by 2025.

Furthermore, there is increasing global demand for digital transformation services as well as cloud computing and AI among other advanced technologies, which provides a positive outlook for IT companies in India.

Speaking of companies in this sector, Infosys is an attractive choice for investment. It is the second-largest Indian IT firm with a good record of return on equity (ROE) and almost no debt at all. As of June 21, 2024, the Infosys share price was Rs.1,532.701.

Moreover, Infosys share price forecast could reach up to Rs. 2,284.98 by 2029. This suggests potential for growth in the future, further enhancing its appeal to investors.

Who are Infosys Limited’s competitors in the IT sector?

There are several companies that compete with Infosys Limited in the BFS (Banking and Financial Services) sector. Some of the main rivals are:

• Tata Consultancy Services (TCS)
• Accenture
• Cognizant
• IBM (IBM Global Services)
• Wipro
• HCL Technologies (HCLTech)

History of Infosys Limited

• Incorporation: Infosys was incorporated as Infosys Consultants Private Limited in 1981 with a capital of US$250. It relocated to Bangalore in 1983. In 1992, The company changed its name to Infosys Technologies Private Limited and became a public limited company in June 1992. It was later renamed Infosys Limited in June 2011.
• Product range: Infosys offers a wide range of services including consulting, technology, and outsourcing services. Key products and services include NIA (Next Generation Integrated AI Platform), Infosys Consulting, cloud-based enterprise transformation services, Infosys Information Platform (IIP), and EdgeVerve Systems which includes Finacle, a global banking platform.
• Infrastructure: Infosys provides services across the hybrid cloud, edge services, network services, digital workplace, and service experience. This enables enterprises to have an infrastructure that is secure, adaptive, and innovation-ready. Infosys also manages 45 million square feet of offices comprising 150 buildings.
• Certifications: Infosys complies with international management system standards and models such as AS 9100, ISO 9001, ISO 13485, ISO 14001, ISO 20000, ISO 22301, ISO 27001, ISO 27701, ISO 4500. Infosys achieved the highest L5 maturity level in one of the world's largest integrated CMMI 2.0 assessments.
• Awards and recognition: Infosys has been named one of the World’s Most Ethical Companies in 2024, for the Fourth Consecutive Year by Ethisphere. It has also been awarded the Global Top Employer 2024 certification in 20 countries, across Asia Pacific, Europe, the Middle East, and North America.

Company profile of Infosys Limited

Pros:

• Strong financials: Infosys’ net profit for Q4 FY24 stood at ₹7,975 crore, which is an increase of 30.5% quarter-on-quarter (QoQ). This indicates a strong profitability trend, which can be a positive sign for investors.
• Positive market outlook: The global digital transformation market size is projected to reach $1,247.5 billion by 2026, witnessing a CAGR of 19.1% between 2021 and 2026. As a leading player in this field, Infosys is well-positioned to benefit from this trend.

Cons:

• Dependency on H-1B visas: Historically, Infosys has relied on H-1B visas for its workforce. Changes in visa policies can impact its operations and talent acquisition.
• Competition: The IT services industry is highly competitive. Infosys faces stiff competition from other Indian IT giants (like TCS and Wipro) and global players (such as Accenture and IBM).
• Attrition rates: High attrition rates are common in the IT sector. Infosys also grapples with retaining top talent, which affects project continuity and costs.

The finances and Infosys share price forecast

Here’s the Financial information of Infosys Limited as of June 2024:

The Infosys share price today is Rs. 1,532.70, while Infosys share price in 2025 is predicted to reach an average of Rs. 4,265.33, indicating potential growth for investors.

Shareholding pattern of Infosys Limited

The shareholding pattern can significantly impact the Infosys share price chart. This is because the distribution of shares among various types of investors, such as promoters, institutional investors, and the general public, can influence market sentiment and, consequently, the stock’s price.

As of the latest data, the shareholding pattern of Yes Bank Ltd. is as follows:

• Promoters: Hold 14.7%
• Foreign Institutional Investors (FII): 34.1%
• Domestic Institutional Investors (DII): 35.9%
• Public: 15.0%

Peer multiple comparison

Here are some of the main competitors of Infosys Ltd. and their respective financial metrics, along with a comparison of Infosys share price: