Stock in Focus: Infosys Limited (INFY)

Company Profile:

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally. It provides application development and management, independent validation, product engineering and management, infrastructure management, enterprise application management, and support and integration services. The company’s products and platforms include Finacle, a core banking solution; Edge suite of products; Infosys NIA – an artificial intelligence platform; McCamish – an insurance platform; Panaya; and Skava. The company serves clients in the financial services and insurance, life sciences and healthcare, manufacturing, retail, consumer packaged goods and logistics, hi-tech, communications, telecom OEM, media, energy, utilities, resources, services, and other industries. Infosys Limited has a strategic partnership with ABN AMRO Bank N.V. for providing mortgage administration services through digital platforms in the Netherlands, Belgium, and Germany. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was founded in 1981 and is headquartered in Bengaluru, India.

Recent News:

The company posted a net profit of 38.02 billion rupees ($554.00 million) in the three months to June 30, compared with 36.12 billion rupees a year ago, helped by a record $2.7 billion worth of deal wins in the quarter. Its revenue from operations rose 14%, while at constant currencies revenue grew 12.4%.

On June 24, 2019, the company announced a long-term strategic partnership with Toyota Material Handling Europe (TMHE). As IT services partner, Infosys will help TMHE in its digital transformation journey by facilitating transformation to a scalable digital hybrid cloud platform, providing application services, digital workplace, infrastructure management and a dedicated data center operation.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

INFY’s strengths can be seen in its better growth, strong profitability and better efficiency compared with its peers. Its revenue has increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator, the RSI(14) stands at 71.34 with positive bias. We rate Infosys Limited (INFY) a STRONG BUY.

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