Investing in Innovation: Exploring Infosys Growth Trajectory



Infosys is the brainchild of Narayan Murthy and after TCS, Infosys is the second-largest IT company in the India. Consistent growth in Infosys is a major attraction for investors to prefer this IT stock.

Headquartered in Bengaluru, Karnataka, Infosys received recognition on a global level when it became the fourth Indian IT company to reach $100 billion in market capitalisation. In this article, we will discuss different financial aspects of Infosys.

Infosys Financial Analysis

This IT giant is well-reputed and has been performing consistently well. Infosys has retained its EBITDA margin guidance for the Q3 of fiscal year 2024. The range is maintained between 20% to 22%. EBITDA is a reliable parameter that must be studied to judge a company’s performance. It gauges profitability by deducting manufacturing or any service-related costs.

For more information regarding the company’s sales and revenue, read the table below.

CategoryMarch 2023March 2022
Net IncomeRs 24,095 crRs 22,110 cr
Total RevenueRs 1,46,747 crRs 1, 21,641 cr
Operating IncomeRs 30,905 cr28,015 cr

Infosys Price Analysis

The TTM P/E ratio of Infosys is at 26.19. Out of 39 stock analysts, 11 have given a rating of strong buy whereas 12 have rated the stock as a must-buy. Only 5 analysts have given the shares a sell rating. The public shareholding of Infosys is 84.92% whereas promoter group shareholding is 14.78%.

As of March 2024, Infosys share price is around  Rs 1,630+ which is pretty high compared to Rs 1,185 a year ago. Here is the Infosys share price chart.

Should You Invest in Infosys Stocks?

Investing in Infosys is a safe option for those who are looking for long-term investments. The company has a low debt-to-equity ratio and an operating profit of  24% as of September 2023. Infosys is recognised for its agility, expertise and digital transformation and focus on sustainability.

With a 7% surge in the net profit of Infosys shares in the December quarter of 2023, investing experts are optimistic given the 1% revenue rise recorded in Q3 FY2024. The stock has a 2.11% dividend yield.

Many analysts recommend buying Infosys shares owing to its high QVT Stock Score. According to this score, the share has high financial strength, has an expensive evaluation and is technically neutral. Therefore, Infosys can be a good option for long-term investment and for short-term as well if invested as per individual investment profile.

Every company is subject to global economic changes and market fluctuations, and so is Infosys. However, since its inception, the company has expanded significantly in the field of information technology and is now venturing into Artificial Intelligence. This shows the adaptability of the workforce and the urge for constant improvement.

Bottom Line

Infosys has performed well over the years and can be a good option to diversify investment portfolios. Do not forget to conduct your research before making investment decisions.