INFOSYS Limited is an Indian multinational corporation that provides business consulting, information technology, and outsourcing services to clients across the globe. Established in 1981, INFOSYS has come a long way and has been able to establish itself as one of the leading companies in the IT sector.
INFOSYS has done well in the last few years, and its stock price has shown a steady growth trend.
The top management of INFOSYS has been able to capitalize on opportunities and has shown consistent performance, which has helped the company deliver strong financial performance. In the financial year 2020-21, INFOSYS revenue grew by 8.4% YoY (year-on-year), indicating the company’s resilience even during the pandemic. The company’s net profit grew by 16.8% YoY, indicating the management’s ability to optimize costs and improve operational efficiencies.
INFOSYS has a strong presence in the United States, its largest market, and has been able to leverage its expertise in technology to expand its client base. The company has won several high-value deals in the US market, which has helped increase its market share in the region. INFOSYS has also been actively investing in research and development (R&D) to improve its capabilities and stay ahead of the competition.
Another factor that has been contributing to INFOSYS’s growth is its sustainability initiatives. The company has been at the forefront of sustainable practices and has been recognized by various industry bodies. INFOSYS has invested heavily in renewable energy, recycling, and water treatment initiatives, reducing its carbon footprint and positively impacting its bottom line.
In terms of valuation, INFOSYS is currently trading at a P/E ratio of 22.53, which is similar to industry average of 22.86. This indicates that the market is willing to pay a premium for INFOSYS’s growth prospects. INFOSYS’s P/B ratio is 7.46, which is greater than the industry average of 5.38.
INFOSYS has a strong balance sheet with cash reserves of around INR 30,000 crore, indicating the company’s financial stability. The company also has a healthy debt-to-equity ratio of 0.06, indicating that the company is not highly leveraged.
INFOSYS SHARE PRICE HISTORY
The initial years of Infosys were challenging as the company struggled to position itself as a leading player within the technology industry. However, the company’s fortunes started changing in the late ’90s, fueled by the rise of the internet and the growth of the technology sector. In the year 2000, Infosys stock shot up to INR 9,000 per share, which made the company an overnight success story. This rise was driven mainly by the dot-com boom and investors’ increasing appetite for tech stocks.
The subsequent years saw Infosys continue to grow steadily with its services portfolio evolving to keep up with changing market dynamics. The company’s stock price also reflected this growth, and by 2008, it had reached an all-time high of INR 3,800 per share. However, this progress was short-lived, and the global financial crisis of 2008 saw the company’s stock price take a severe hit, falling to INR 1,666 per share.
In recent years, Infosys has regained its footing, with its stock price steadily recovering and hovering around INR 1,175 per share as of August 2021. This progress can be attributed to the company’s continued focus on enhancing digital capabilities, growing its client base, and attracting top talent.
In summary, Infosys has had an exciting journey as a publicly traded company, with its stock price reflecting the changing fortunes of the company and the broader market. The company’s commitment to innovation and its ability to adapt to market changes have been key drivers of its consistent financial performance, making Infosys a favorable investment option for many investors. As the technology industry continues to evolve, it will be intriguing to see how Infosys adapts and shapes the future of the industry.
INFOSYS STOCK – TECHNICAL ANALYSIS & PRICE TARGETS
- As you can see on the above chart, infosys share has formed a two step pattern on monthly time frame.
- currently the price is getting rejected from the fibonacci cluster as shown in the above picture
- Price is expected reverse and go bullish for the next few years, it is a good time to buy infosys stock!
- Infosys share price target: The first price target for infosys share is Rs.2430 (1.618 fib extension) and the second price target for infosys share is Rs.3200 (2.618 fib extension)
- Why infosys share is falling? Well, what goes up, must come down, However, this down rally is just a minor correction, Infosys stock is still a bullish goldmine.
CONCLUSION
In conclusion, INFOSYS has managed to establish a strong position in the IT sector, with a robust business model, sound management practices, and strategic investments in research and development. Its focus on sustainability initiatives, coupled with strong financial performance, has helped it maintain a premium valuation in the market. Being a blue-chip stock in the NSE, INFOSYS is suitable for investors who are looking for long-term investments with steady returns. Given its strong fundamentals, INFOSYS is well-positioned to continue delivering value to its shareholders in the years to come.