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Infosys

INFY · Nifty 50

1,157.7

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 14.6 (25%ile of 5Y range 15-15). Trading below historical range.
Sector Positionit sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score95/100 (STRONG). 1 positive flags, 2 concerns.
Historical Context160 similar technical setups. Average outcome: -8.7% decline. 0% positive.
Revenue TrendRevenue growing at 6.6% YoY. Moderate revenue growth — 6.6% YoY

Fundamental

95/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

Infosys scores 95/100 on fundamentals (strong). Infosys: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 95/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 33.9% broken into three drivers. Each shows how efficiently the company generates returns.

ROE33.9%=
16.4%Net Margin
×
1.2xTurnover
×
1.7xLeverage

ROE of 33.86% is strong efficiency-driven and stable. Net margin of 16.4% × asset turnover of 1.23x × leverage of 1.7x.

What This Means

Net margin of 16.4% means the company keeps ₹16.4 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 1.23x means the company efficiently uses its assets to generate revenue. Leverage of 1.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

30.2%

Operating

22.0%

Net

16.4%

improving

Gross margin 30.2% → operating margin 22.0% → net margin 16.4%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

ADEQUATE

Cash flow covers net income 1.2x — earnings are ADEQUATE quality. Cash conversion is reasonable.

Debt Sustainability

COMFORTABLE

Interest covered 126.6x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin at 18.5% — strong cash generation. Business is self-funding.

Peer Comparison

Infosys is compared against 10 peers in the it sector.

Key Watchpoints

🟢

Breaks above ₹1216 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1100 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 14.6

Valuation normalization

🟢

It sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (0.5%) than equity (-12.7%)

Risk Flags

⚠️ 2 Warning1 Positive3 total flags
⚠️Low promoter holding: 16%
Governance

No single controlling shareholder. Management may not be aligned with shareholders.

⚠️Price/Sales: 226.5x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

➡️ 3 flags — 1 positive, 2 warning. Mixed profile.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
14.6MODERATE
P/B Ratio
4.8HIGH
ROE
31.4%HIGH
Market Cap
₹45198627.3L CrHIGH
From 52W High
67% of high
Promoter Holding
16.4%MODERATE
Institutional
54.9%
Sector Peers
10
Infosys Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight