INFY:NYSEInfosys Limited Analysis

Infosys reported a 21% YoY jump in Q4 profit and a 13.4% quarterly revenue increase, yet the cautious FY27 revenue guidance of 1.5‑3.5% triggered a near‑6% pre‑market drop in its ADRs. The stock trades at $12.67, comfortably above the computed support of $11.56 and below the $13.27 resistance, offering an upside potential of roughly 16% versus the DCF fair value of $14.19. Its forward P/E of 15.8 is well below the industry average of 39.5, and a 4.07% dividend yield with a 64% payout ratio underscores strong cash generation. Technical signals are mixed: the MACD histogram is positive and the line sits above the signal, suggesting short‑term bullish momentum, while the 20‑day SMA (12.39) sits below the 50‑day (13.07) and 200‑day (15.91) averages, confirming a longer‑term bearish trend. RSI at 49 is neutral, and volume is increasing, but 30‑day volatility remains high at 38% and beta is sub‑1, indicating modest market sensitivity. Fundamentally, the company delivers solid ROE (31%) and ROA (15%), maintains a healthy cash balance, and benefits from AI‑driven deal wins, supporting a view that the stock is undervalued despite near‑term sentiment pressure.