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INFY:NYSEInfosys Limited Analysis

Data as of 2026-06-13 - not real-time

$11.74

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Infosys (INFY) delivers solid earnings growth, a robust cash conversion profile and a dividend yield that ranks among the highest in the technology services space, while trading at a price‑earnings multiple far below the sector average. The company’s DCF‑derived fair value suggests a sizable upside, and its return on equity remains in the high‑30s percent range, underscoring strong profitability. Recent headlines highlight a 21% year‑over‑year profit surge and expanding AI‑driven engagements, including a new partnership with DNB Bank, which should fuel medium‑term top‑line expansion.
On the downside, the stock is currently priced below its 20‑day, 50‑day and 200‑day moving averages, the RSI sits under the 50 mark and the MACD histogram remains negative, all pointing to a bearish short‑term momentum. A cautious revenue outlook for the next fiscal year and a near‑6% pre‑market drop in ADRs add to the near‑term pressure, despite the underlying fundamentals remaining resilient.

Market Outlook

Short Term

< 1 year
Cautious
Model confidence: 7/10

Key Factors

  • price trading below key moving averages
  • negative MACD and RSI indicating bearish momentum
  • cautious FY27 revenue guidance and recent ADR decline

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • undervalued relative to DCF and peer multiples
  • strong cash flow and high dividend yield
  • accelerating AI‑focused client wins

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • sustained high ROE and operating margins
  • expanding AI and digital services platform
  • appealing dividend profile with solid payout sustainability

Key Metrics & Analysis

Financial Health

Revenue Growth6.60%
Profit Margin16.43%
P/E Ratio14.7
ROE31.44%
ROA15.09%
Debt/Equity9.83
P/B Ratio9.7
Op. Cash Flow$4.0B
Free Cash Flow$3.2B
Industry P/E36.8

Technical Analysis

TrendBearish
RSI39.3
Support$11.42
Resistance$13.56
MA 20$12.44
MA 50$12.85
MA 200$15.62
MACDBearish
VolumeDecreasing
Fear & Greed Index89.86

Valuation

Fair Value$14.42
Target Price$14.68
Upside/Downside25.05%
GradeUndervalued
TypeBlend
Dividend Yield4.41%

Risk Assessment

Beta0.73
Volatility41.07%
Sector RiskMedium
Reg. RiskMedium
Geo RiskHigh
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.