INFY
Infosys Limited
TMT
11/24/2014
Presented
| Date | 11/20/2014 |
| Price | $16.56 |
| Market Cap | $3.80B |
| Ent Value | $32.81B |
| P/E Ratio | 18.53x |
| Book Value | $1.80 |
| Div Yield | 1.6% |
| Shares O/S | 2,296.96M |
| Ave Daily Vol | 6,760,000 |
| Short Int | N/A |
Current
| Price | $23.02 |
| Market Cap | $95.58B |
| Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Its solutions include business IT services comprising application development and maintenance, independent validation services, infrastructure management, business process management, and engineering services consisting of product engineering and life cycle solutions; and consulting and systems integration services, including consulting, enterprise solutions, systems integration, and advanced technologies. Its solutions also comprise products, platforms, and solutions under the Infosys Edge brand to cater the next generation market needs driven by global trends, including digital consumers, digital marketing, emerging economies, distributive trade, and enterprise buying; and banking software products to address the core banking, e-banking, mobile banking, CRM, payments, treasury, origination, liquidity management, wealth management, and Islamic banking requirements of retail, corporate, and universal banks worldwide. In addition, the company offers cloud and IT transformation services, such as cloud-based transformation, Big Data, and workplace transformation; and enterprise mobility services and solutions, including consulting services, business solutions, technology solutions, and services. It serves clients in financial services and insurance; manufacturing; energy, communications and services; resources and utilities; retail, consumer packaged goods and logistics; life sciences; and healthcare and growth markets. 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. |
Please note, this stock split on 12/8/2014 at a ratio of 2/1 and again on 6/25/2015 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $66.25.
Publicly traded companies mentioned herein: Accenture plc (ACN), Apple Inc (AAPL), Cognizant Technology Solutions Corporation (CTSH), Infosys Ltd (INFO IN / INFY), SAP SE (SAP GR / SAP)
Highlights
The recent press regarding senior management departures from Infosys’ BPO unit and the overbilling of a top client (Apple) are concerning to the presenter, and it does not appear as though there is any fear baked into the stock price (INR 4200 / $67). While the BPO segment represents just ~6% of the company’s total revenues and the potential for H-1B visa use to be extended (Infosys has over 6,000 of these visas) are positives, he is short the stock and sees asymmetric downside risk for shareholders as a number of structural issues outweigh the benefits of any potentially positive factors.
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