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Infosys Ltd

NSE: INFY BSE: 500209

1300.10

(0.85%)

Fri, 06 Mar 2026, 04:15 am

Infosys Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.3x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
  • Infosys's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Infosys's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Infosys is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN IT industry average.
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Cons

  • Cash flow for Infosys is expected to decrease over the next 2 years.
  • Infosys's earnings are expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
  • Infosys's earnings growth is positive but not above the India market average.
  • Infosys's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Infosys's earnings are expected to decrease over the next year.
  • Infosys's earnings are expected to increase but not above the low risk growth rate in 3 years time
  • Infosys's net income is expected to increase but not above the 50% threshold in 2 years time.
  • A decline in Infosys's performance (ROE) is expected over the next 3 years.
  • Infosys's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Infosys's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • Infosys's revenue growth is positive but not above the India market average.

health

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Pros

  • Infosys is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Infosys is profitable, therefore cash runway is not a concern.
  • Infosys is profitable, therefore cash runway is not a concern.
  • Infosys has no debt, it does not need to be covered by operating cash flow.
  • Infosys has no debt, it does not need to be covered by short term assets.
  • Infosys's cash and other short term assets cover its long term commitments.
  • Infosys has not taken on any debt in the past 5 years.
  • Infosys has no debt, therefore coverage of interest payments is not a concern.
  • Infosys has no debt.
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Infosys management team is about average.
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    Cons

    • The average tenure for the Infosys board of directors is less than 3 years, this suggests a new board.
    • Salil's remuneration is higher than average for companies of similar size in India.
    • Salil's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
    • Infosys individual insiders have only sold shares in the past 3 months.

    past

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    Pros

    • Infosys's 1-year earnings growth exceeds its 5-year average (6% vs 3.2%)
    • Infosys's year on year earnings growth rate has been positive over the past 5 years.
    • Infosys used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
    • Infosys has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Infosys has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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    Cons

    • Infosys's earnings growth has not exceeded the IN IT industry average in the past year (6% vs 6%).

    value

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    Pros

    • 500209 outperformed the IT industry which returned -10.1% over the past year.
    • 500209 outperformed the Market in India which returned -14.5% over the past year.
    • BSE:500209 is up 7.5% along with the India market (8%) over the past month.
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    Cons

    • Infosys's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Infosys's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Infosys is overvalued based on assets compared to the IN IT industry average.
    • Infosys is poor value based on expected growth next year.
    • Infosys is overvalued based on earnings compared to the IN IT industry average.
    • Infosys is overvalued based on earnings compared to the India market.
    • BSE:500209 is up 7.5% underperforming the IT industry which returned 8.5% over the past month.

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