Stock Name -Infosys ltd
Industry/Sector- It Services
Infosys Ltd – Brief Background:
Infosys Ltd is a leading Indian multinational information technology (IT) services and consulting company headquartered in Bengaluru, Karnataka. It was founded in 1981 by Narayana Murthy and six other engineers with an initial capital of just $250. Over the decades, Infosys has grown to become one of the largest IT companies in India and a global leader in digital services.
The company provides services such as software development, maintenance, and independent validation to companies in finance, insurance, manufacturing, and other domains. Infosys is known for its innovation, strong corporate governance, and emphasis on employee development. It was one of the first Indian companies to be listed on the NASDAQ in 1999 (via ADRs).Infosys continues to be a major player in the global IT sector, offering services in cloud computing, AI, data analytics, and digital transformation.
Business Model
Infosys earns revenue by offering a variety of digital and IT-related services such as:
IT Services: Software development, maintenance, and support services.
Consulting: Business and technology consulting to help clients become more efficient.
Digital Transformation: Helping clients shift from traditional IT systems to cloud, AI, analytics, and automation.
Engineering Services: Assisting in product engineering, design, and lifecycle management.
BPO (Business Process Outsourcing): Handling customer service, finance, HR, and other back-office tasks for clients.
Cloud Services: Helping clients move to and manage operations on the cloud.
Cybersecurity: Providing security solutions to protect client data and systems.
Infosys follows a service-based revenue model, mainly earning money in three ways:
- Time and Material Model: Clients pay for the hours worked by Infosys employees.
- Fixed-Price Projects: A fixed fee is charged for delivering a specific project or solution.
- Outcome-Based Pricing: Payment is tied to the results or value delivered to the client (e.g., cost savings or revenue growth).
Most of Infosys’s revenue comes from long-term contracts with clients across North America, Europe, and other global markets.
Target Customers of Infosys
Infosys serves large enterprises across various sectors like:
- Banking and Financial Services
- Retail and Consumer Goods
- Telecom and Media
- Healthcare and Life Sciences
- Energy and Utilities
- Manufacturing
- Insurance
SWOT
Strengths (Strong Points):
- Global Presence: Infosys operates in over 50 countries, making it a well-known and trusted IT brand across the world.
- Strong Client Base: It has long-term contracts with big companies, including many Fortune 500 firms.
- Skilled Workforce: Infosys has a large pool of talented engineers, developers, and IT professionals.
- Brand Value & Trust: It’s one of the most respected IT companies in India and has built a strong reputation over the years.
- Focus on Innovation: Infosys invests heavily in new technologies like AI, automation, and cloud computing.
Weaknesses (Areas to Improve):Dependence on the US Market: A big chunk of Infosys’s revenue comes from the US, which makes it vulnerable to changes in US policies.
- Employee Attrition: High employee turnover (people leaving the job) is a constant issue, which affects productivity.
- Limited Product Offerings: Infosys mainly provides services and does not have strong proprietary products like some of its global competitors.
Opportunities (Chances to Grow):Digital Transformation Demand: More businesses are going digital, which increases demand for IT services.
- Expansion in New Markets: Infosys can expand more in Asia, Africa, and Latin America.
- Mergers & Acquisitions: Acquiring smaller tech companies can help Infosys grow faster and improve its capabilities.
- Growth in AI and Cloud Services: The increasing use of artificial intelligence and cloud computing offers big growth opportunities.
Threats (Risks & Challenges):Intense Competition: The IT industry is very competitive with big players like TCS, Accenture, and Wipro.
- Currency Fluctuations: Since Infosys earns in foreign currencies, exchange rate changes can affect profits.
- Changes in Regulations: New government policies or visa rules (especially in the US) can hurt business.
- Technological Disruption: Rapid changes in technology can make current services outdated if Infosys doesn’t adapt quickly.
Important ratio of Infosys stock
Key Financial Ratios of Infosys (in Rs. Cr.) | Mar 24 | Mar 23 | Mar 22 | Mar 21 | Mar 20 |
|
Per Share Ratios |
| |||||
Basic EPS (Rs.) | 63.39 | 57.63 | 52.52 | 45.61 | 38.97 |
Book Value [ExclRevalReserve]/Share (Rs.) | 213.57 | 183.17 | 180.50 | 180.75 | 155.15 |
|
Book Value [InclRevalReserve]/Share (Rs.) | 213.57 | 183.17 | 180.50 | 180.75 | 155.15 |
|
Revenue from Operations/Share (Rs.) | 371.00 | 354.68 | 289.90 | 236.52 | 213.93 |
Net Profit/Share (Rs.) | 63.37 | 58.26 | 52.78 | 45.72 | 39.21 |
Net Profit Margin (%) | 17.08 | 16.42 | 18.20 | 19.33 | 18.32 |
Return on Capital Employed (%) | 36.81 | 38.79 | 35.96 | 31.73 | 30.83 |
Total Debt/Equity (X) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Share holding pattern
| mmary | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Sep 2022 | Jun 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 14.6% | 14.4% | 14.4% | 14.6% | 14.7% | 14.8% | 14.9% | 14.9% | 15.1% | 15.1% | 15.2% | 13.1% |
| FII | 32.9% | 33.3% | 33.3% | 32.7% | 34.1% | 33.7% | 33.6% | 33.4% | 35.1% | 36.3% | 36.2% | 31.7% |
| DII | 38.5% | 38.4% | 38.1% | 37.6% | 35.9% | 35.8% | 35.5% | 34.9% | 33.9% | 32.8% | 32.4% | 18.9% |
| Public | 13.7% | 13.6% | 13.9% | 14.8% | 15.0% | 15.4% | 15.8% | 16.4% | 15.6% | 15.5% | 15.9% | 36.0% |
| Others | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.4% | 0.4% | 0.3% |
Suppose you invested 10,000 rs in year 2000 what would be the amount today .
Suppose i invest 10000 rs in 2000 in Infosys ltd what would be the value of my investment now.
- Investment Details
- Amount Invested: ₹10,000
- Year of Investment: 2000
- Company: Infosys Ltd.
- Infosys Share Price in 2000
- Approximate Price (Adjusted for Splits/Bonuses): ₹100 per share (adjusted)
- Number of Shares Bought: ₹10,000 / ₹100 = 100 shares
- Stock Splits and Bonuses (Since 2000)
- Infosys has given multiple bonuses and stock splits. Here’s a simplified list:
- Year Type Ratio Shares After2004 Bonus 3:1 100 → 400
- 2006 Bonus 1:1 400 → 800
- 2014 Bonus 1:1 800 → 1600
- 2015 Stock Split 1:2 1600 → 3200
- 2018 Bonus 1:1 3200 → 6400
- Final Number of Shares: 6400 shares
- Current Share Price (April 2025)
- Infosys Share Price (Approx): ₹1,400
- Current Value of Investment
- 6400 shares × ₹1,400 = ₹89,60,000
- Returns SummaryInitial Investment: ₹10,000
Current Value: ₹89,60,000
Holding Period: 25 years
Return: 896x (or 8,860%)
Conclusion-
In conclusion, Infosys Ltd stands as one of India’s most successful and respected IT companies. From its humble beginnings in 1981 to becoming a global leader in technology and consulting, Infosys has shown how strong leadership, innovation, and a clear vision can lead to long-term success. The company has built a solid reputation for delivering high-quality services to clients across the world while maintaining ethical business practices. Its focus on digital transformation, employee development, and sustainability keeps it competitive in today’s fast-changing tech world. Overall, the Infosys story is a great example of how an Indian company can make a global impact with dedication, smart strategy, and constant innovation.
Disclaimer-
The information provided on this blog is for educational and informational purposes only. I am not a SEBI-registered financial advisor, and the content shared here should not be considered as investment advice, financial advice, or stock recommendations.Stock market investments are subject to market risks. Please do your own research or consult with a certified financial advisor before making any investment decisions. The views expressed here are personal opinions based on experience, research, and publicly available information.I do not take responsibility for any losses that may occur from decisions made based on the information provided on this blog. Always invest wisely and only after understanding the risks involved.