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INFY:NYSEInfosys Limited Analysis

Data as of 2026-04-10 - not real-time

$13.44

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Infosys (INFY) trades at $13.44, well below its 50‑day SMA of $14.47 and 200‑day SMA of $16.67, signaling a bearish technical backdrop. The RSI sits at 44, indicating neutral momentum, while the MACD histogram is positive, suggesting a tentative bullish signal amid declining volume. Fundamentals remain solid: a P/E of 17.5 versus an industry average of 33.9, a strong ROE of 32.7%, and a dividend yield of 3.75% with a 67% payout ratio. However, the DCF fair value of $12.56 is lower than the current price, implying limited upside from a pure discounted cash flow perspective, though analyst consensus targets around $16.6 point to a potential 23% upside. Recent strategic AI collaborations (Incora, Harness) and the pending acquisition of Optimum Healthcare IT add growth catalysts, while the company’s low beta (0.74) and robust cash position mitigate market volatility risks.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 5/10

Key Factors

  • Price below short‑ and medium‑term moving averages
  • Decreasing volume and bearish trend direction
  • Support level near $12.57 providing downside cushion

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Analyst price targets imply ~23% upside
  • Attractive valuation relative to industry peers (low P/E)
  • Strategic AI partnerships expanding serviceable addressable market

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Strong ROE and cash generation supporting dividend sustainability
  • Growth potential from AI and digital transformation initiatives
  • Solid balance sheet with net cash position and manageable debt

Key Metrics & Analysis

Financial Health

Revenue Growth3.20%
Profit Margin16.15%
P/E Ratio17.5
ROE32.68%
ROA15.67%
Debt/Equity10.53
P/B Ratio5.9
Op. Cash Flow$4.1B
Free Cash Flow$3.1B
Industry P/E33.9

Technical Analysis

TrendBearish
RSI43.9
Support$12.57
Resistance$14.42
MA 20$13.35
MA 50$14.47
MA 200$16.67
MACDBullish
VolumeDecreasing
Fear & Greed Index86.43

Valuation

Fair Value$12.56
Target Price$16.56
Upside/Downside23.19%
GradeFair
TypeBlend
Dividend Yield3.75%

Risk Assessment

Beta0.74
Volatility26.66%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.