Financial Model Of

INFOSYS ltd.
NSE: INFY

Key highlights

Financials
Balance Sheet Size
₹ 1,24,596.0 Cr
6.74%
Net Profit
₹ 24,284.0 Cr
9.01%
 INFOSYS LTD
Historical Financial Statement
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 LTM

# Income Statement - INFOSYS LTD

Sales ₹ 52,797.0 ₹ 56,749.0 ₹ 65,561.0 ₹ 71,534.0 ₹ 73,833.0 ₹ 85,557.0 ₹ 93,594.0 ₹ 1,02,673.0 ₹ 1,23,936.0 ₹ 1,49,468.0 ₹ 1,52,815.0
Sales Growth - 7.49% 15.53% 9.11% 3.21% 15.88% 9.39% 9.70% 20.71% 20.60% 2.24%

COGS ₹ 31,997.0 ₹ 33,790.0 ₹ 40,275.0 ₹ 44,381.0 ₹ 46,188.0 ₹ 55,225.0 ₹ 61,981.0 ₹ 68,347.0 ₹ 84,687.0 ₹ 1,04,796.0 ₹ 1,13,899.0
COGS % Sales 60.60% 59.54% 61.43% 62.04% 62.56% 64.55% 66.22% 66.57% 68.33% 70.11% 74.53%

Gross Profit ₹ 20,800.0 ₹ 22,959.0 ₹ 25,286.0 ₹ 27,153.0 ₹ 27,645.0 ₹ 30,332.0 ₹ 31,613.0 ₹ 34,326.0 ₹ 39,249.0 ₹ 44,672.0 ₹ 38,916.0
Gross Margin 39.40% 40.46% 38.57% 37.96% 37.44% 35.45% 33.78% 33.43% 31.67% 29.89% 25.47%

Selling & General Expenses ₹ 4,527.0 ₹ 4,427.0 ₹ 4,870.0 ₹ 5,271.0 ₹ 5,305.0 ₹ 7,059.0 ₹ 6,314.0 ₹ 4,093.0 ₹ 5,331.0 ₹ 6,665.0 -
S&G Exp % Sales 8.57% 7.80% 7.43% 7.37% 7.19% 8.25% 6.75% 3.99% 4.30% 4.46% 0.00%

EBITDA ₹ 16,273.0 ₹ 18,532.0 ₹ 20,416.0 ₹ 21,882.0 ₹ 22,340.0 ₹ 23,273.0 ₹ 25,299.0 ₹ 30,233.0 ₹ 33,918.0 ₹ 38,007.0 ₹ 38,916.0
EBITDA Margins 30.82% 32.66% 31.14% 30.59% 30.26% 27.20% 27.03% 29.45% 27.37% 25.43% 25.47%

Interest ₹ 9.0 ₹ 12.0 - - - - ₹ 170.0 ₹ 195.0 ₹ 200.0 ₹ 284.0 ₹ 318.0

Interest % Sales 0.02% 0.02% 0.00% 0.00% 0.00% 0.00% 0.18% 0.19% 0.16% 0.19% 0.21%

Depriciation ₹ 1,317.0 ₹ 1,017.0 ₹ 1,459.0 ₹ 1,703.0 ₹ 1,863.0 ₹ 2,011.0 ₹ 2,893.0 ₹ 3,267.0 ₹ 3,476.0 ₹ 4,225.0 ₹ 4,225.0
Depriciation % Sales 2.49% 1.79% 2.23% 2.38% 2.52% 2.35% 3.09% 3.18% 2.80% 2.83% 2.76%

Earnings Before Tax ₹ 14,947.0 ₹ 17,503.0 ₹ 18,957.0 ₹ 20,179.0 ₹ 20,477.0 ₹ 21,262.0 ₹ 22,236.0 ₹ 26,771.0 ₹ 30,242.0 ₹ 33,498.0 ₹ 34,373.0
EBT % Sales 28.31% 30.84% 28.92% 28.21% 27.73% 24.85% 23.76% 26.07% 24.40% 22.41% 22.49%

Taxes ₹ 4,072.0 ₹ 4,911.0 ₹ 5,251.0 ₹ 5,598.0 ₹ 4,241.0 ₹ 5,631.0 ₹ 5,368.0 ₹ 7,205.0 ₹ 7,964.0 ₹ 9,214.0 ₹ 9,459.0
Effective Tax Rate 27.24% 28.06% 27.70% 27.74% 20.71% 26.48% 24.14% 26.91% 26.33% 27.51% 27.52%

Net Profit ₹ 10,875.0 ₹ 12,592.0 ₹ 13,706.0 ₹ 14,581.0 ₹ 16,236.0 ₹ 15,631.0 ₹ 16,868.0 ₹ 19,566.0 ₹ 22,278.0 ₹ 24,284.0 ₹ 24,914.0
Net Profit Margins 20.60% 22.19% 20.91% 20.38% 21.99% 18.27% 18.02% 19.06% 17.98% 16.25% 16.30%

Number of Equity Shares 457.12 459.38 459.39 459.39 436.82 436.89 425.9 426.07 420.67 414.86 414.86

Earning Per Share ₹ 23.8 ₹ 27.4 ₹ 29.8 ₹ 31.7 ₹ 37.2 ₹ 35.8 ₹ 39.6 ₹ 45.9 ₹ 53.0 ₹ 58.5 ₹ 60.1
EPS Growth Rate 15.22% 8.84% 6.38% 17.10% -3.74% 10.70% 15.95% 15.32% 10.53% 2.59%

Dividend Per Share ₹ 7.9 ₹ 14.8 ₹ 12.1 ₹ 12.8 ₹ 21.7 ₹ 21.1 ₹ 17.4 ₹ 26.9 ₹ 30.9 ₹ 33.9 -
Dividend Payout Ratio 33.14% 54.06% 40.48% 40.41% 58.30% 59.00% 44.03% 58.62% 58.39% 57.94% 0.00%

Retained Earnings 66.86% 45.94% 59.52% 59.59% 41.70% 41.00% 55.97% 41.38% 41.61% 42.06% 100.00%
 Historical Financial Statement
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Balance Sheet - INFOSYS LTD

Equity Share Capital ₹ 286.0 ₹ 572.0 ₹ 1,144.0 ₹ 1,144.0 ₹ 1,088.0 ₹ 2,170.0 ₹ 2,122.0 ₹ 2,124.0 ₹ 2,098.0 ₹ 2,069.0
Reserves ₹ 44,244.0 ₹ 50,164.0 ₹ 60,600.0 ₹ 67,838.0 ₹ 63,835.0 ₹ 62,778.0 ₹ 63,328.0 ₹ 74,227.0 ₹ 73,252.0 ₹ 73,338.0
Borrowings - - - - - - ₹ 4,633.0 ₹ 5,325.0 ₹ 5,474.0 ₹ 8,299.0
Other Liabilities ₹ 12,436.0 ₹ 15,553.0 ₹ 13,354.0 ₹ 14,166.0 ₹ 14,426.0 ₹ 19,118.0 ₹ 21,717.0 ₹ 25,835.0 ₹ 35,905.0 ₹ 40,890.0
Total Liabilities ₹ 56,966.0 ₹ 66,289.0 ₹ 75,098.0 ₹ 83,148.0 ₹ 79,349.0 ₹ 84,066.0 ₹ 91,800.0 ₹ 1,07,511.0 ₹ 1,16,729.0 ₹ 1,24,596.0

Net Block ₹ 8,378.0 ₹ 11,346.0 ₹ 13,386.0 ₹ 14,179.0 ₹ 12,574.0 ₹ 15,710.0 ₹ 23,789.0 ₹ 25,505.0 ₹ 25,800.0 ₹ 29,225.0
Capital Work in Progress 961.00 776.00 960.00 1,365.00 1,606.00 1,388.00 954.00 922.00 416.00 288.00
Investments ₹ 4,331.0 ₹ 2,270.0 ₹ 1,892.0 ₹ 16,423.0 ₹ 12,163.0 ₹ 11,261.0 ₹ 8,792.0 ₹ 14,205.0 ₹ 20,324.0 ₹ 19,478.0
Other Assets ₹ 8,995.0 ₹ 11,817.0 ₹ 14,833.0 ₹ 16,234.0 ₹ 20,046.0 ₹ 21,312.0 ₹ 21,129.0 ₹ 22,871.0 ₹ 30,019.0 ₹ 38,008.0
Receivables 8,351.00 9,713.00 11,330.00 12,322.00 13,142.00 14,827.00 18,487.00 19,294.00 22,698.00 25,424.00
Cash & Bank ₹ 25,950.0 ₹ 30,367.0 ₹ 32,697.0 ₹ 22,625.0 ₹ 19,818.0 ₹ 19,568.0 ₹ 18,649.0 ₹ 24,714.0 ₹ 17,472.0 ₹ 12,173.0
Total Assets ₹ 56,966.0 ₹ 66,289.0 ₹ 75,098.0 ₹ 83,148.0 ₹ 79,349.0 ₹ 84,066.0 ₹ 91,800.0 ₹ 1,07,511.0 ₹ 1,16,729.0 ₹ 1,24,596.0

Cash Flow Statement - INFOSYS LTD

Operating Activities
Profit from operations ₹ 14,172.0 ₹ 15,946.0 ₹ 17,839.0 ₹ 19,340.0 ₹ 19,963.0 ₹ 22,126.0 ₹ 23,920.0 ₹ 28,845.0 ₹ 32,921.0 ₹ 37,605.0
Receivables (₹ 1,406.0) (₹ 1,475.0) (₹ 1,654.0) (₹ 1,743.0) (₹ 1,523.0) (₹ 2,881.0) (₹ 3,861.0) (₹ 1,835.0) (₹ 7,937.0) (₹ 7,076.0)
Payables - - ₹ 242.0 (₹ 19.0) ₹ 328.0 ₹ 916.0 (₹ 373.0) (₹ 245.0) ₹ 1,489.0 (₹ 279.0)
Loans Advances (₹ 1,060.0) (₹ 221.0) (₹ 1,134.0) - - - - - (₹ 1,914.0) (₹ 3,108.0)
Other WC items ₹ 1,993.0 ₹ 854.0 ₹ 600.0 (₹ 394.0) ₹ 1,279.0 ₹ 1,512.0 ₹ 1,867.0 ₹ 2,848.0 ₹ 6,938.0 ₹ 4,119.0
Working capital changes (₹ 473.0) (₹ 842.0) (₹ 1,946.0) (₹ 2,156.0) ₹ 84.0 (₹ 453.0) (₹ 2,367.0) ₹ 768.0 (₹ 1,424.0) (₹ 6,344.0)
Direct taxes (₹ 3,874.0) (₹ 6,751.0) (₹ 5,865.0) (₹ 5,653.0) (₹ 6,829.0) (₹ 6,832.0) (₹ 4,550.0) (₹ 6,389.0) (₹ 7,612.0) (₹ 8,794.0)
Exceptional CF items - - - - - - - - - -
Cash From Operating Activities ₹ 9,825.0 ₹ 8,353.0 ₹ 10,028.0 ₹ 11,531.0 ₹ 13,218.0 ₹ 14,841.0 ₹ 17,003.0 ₹ 23,224.0 ₹ 23,885.0 ₹ 22,467.0

Investing Activities
Fixed assets purchased (₹ 2,748.0) (₹ 2,247.0) (₹ 2,723.0) (₹ 2,760.0) (₹ 1,998.0) (₹ 2,445.0) (₹ 3,307.0) (₹ 2,107.0) (₹ 2,161.0) (₹ 2,579.0)
Fixed assets sold ₹ 3.0 - - - - - - - - -
Investments purchased (₹ 25,046.0) (₹ 23,923.0) (₹ 24,577.0) (₹ 66,410.0) (₹ 69,159.0) (₹ 79,410.0) (₹ 37,482.0) (₹ 46,738.0) (₹ 59,951.0) (₹ 75,899.0)
Investments sold ₹ 22,385.0 ₹ 25,253.0 ₹ 24,980.0 ₹ 52,048.0 ₹ 74,003.0 ₹ 78,098.0 ₹ 38,861.0 ₹ 40,381.0 ₹ 57,356.0 ₹ 76,821.0
Interest received ₹ 2,379.0 ₹ 2,551.0 ₹ 2,383.0 - - - - - - -
Dividends received - - - ₹ 2,753.0 ₹ 1,768.0 ₹ 1,557.0 ₹ 1,929.0 ₹ 1,418.0 ₹ 1,898.0 ₹ 1,525.0
Acquisition of companies - (₹ 1,376.0) (₹ 747.0) - - - - - - -
Inter corporate deposits - - (₹ 142.0) (₹ 164.0) (₹ 130.0) (₹ 24.0) (₹ 108.0) (₹ 207.0) - -
Other investing items ₹ 464.0 ₹ 741.0 (₹ 59.0) (₹ 131.0) ₹ 49.0 ₹ 1,592.0 (₹ 224.0) (₹ 120.0) (₹ 3,627.0) (₹ 939.0)
Cash From Investing Activties (₹ 2,563.0) ₹ 999.0 (₹ 885.0) (₹ 14,664.0) ₹ 4,533.0 (₹ 632.0) (₹ 331.0) (₹ 7,373.0) (₹ 6,485.0) (₹ 1,071.0)

Financing Activities
Proceeds from shares - - - - ₹ 5.0 ₹ 6.0 ₹ 6.0 ₹ 15.0 ₹ 21.0 ₹ 35.0
Dividends paid (₹ 3,144.0) (₹ 4,935.0) (₹ 6,813.0) (₹ 6,939.0) (₹ 7,464.0) (₹ 13,705.0) (₹ 9,548.0) (₹ 9,137.0) (₹ 12,731.0) (₹ 13,653.0)
Financial liabilities - - - - - - (₹ 571.0) (₹ 698.0) (₹ 915.0) (₹ 1,231.0)
Other financing items - - - - (₹ 13,046.0) (₹ 813.0) (₹ 7,478.0) ₹ 34.0 (₹ 11,017.0) (₹ 11,846.0)
Cash From Financing Activities (₹ 3,144.0) (₹ 4,935.0) (₹ 6,813.0) (₹ 6,939.0) (₹ 20,505.0) (₹ 14,512.0) (₹ 17,591.0) (₹ 9,786.0) (₹ 24,642.0) (₹ 26,695.0)

Net Cash Flow ₹ 4,118.0 ₹ 4,417.0 ₹ 2,330.0 (₹ 10,072.0) (₹ 2,754.0) (₹ 303.0) (₹ 919.0) ₹ 6,065.0 (₹ 7,242.0) (₹ 5,299.0)
 Common Size Income Statement - INFOSYS LTD

Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Other Mfr. Exp 6.30% 7.46% 9.38% 9.80% 10.33% 11.98% 12.21% 12.74% 17.01% 18.00%
Employee Cost 57.53% 55.91% 55.12% 55.00% 55.16% 54.82% 56.06% 55.29% 52.61% 53.40%
Selling and admin 7.16% 6.35% 7.11% 6.69% 6.50% 6.72% 5.92% 3.18% 3.54% 3.61%
Other Expenses 1.87% 1.95% 0.69% 1.00% 1.02% 1.82% 1.03% 0.89% 0.84% 0.93%
Other Income 5.31% 6.43% 5.00% 4.45% 4.69% 3.49% 3.09% 2.19% 1.89% 1.84%
Depreciation 2.63% 1.91% 2.34% 2.49% 2.64% 2.43% 3.19% 3.25% 2.86% 2.88%
Interest 0.02% 0.02% 0.00% 0.00% 0.00% 0.00% 0.19% 0.19% 0.16% 0.19%
Profit before tax 29.38% 32.42% 30.01% 29.13% 28.74% 25.45% 24.24% 26.50% 24.75% 22.70%
Tax 8.12% 9.21% 8.41% 8.17% 6.01% 6.81% 5.91% 7.17% 6.55% 6.28%
Effective Tax Rate 21.26% 23.20% 21.60% 20.96% 22.73% 18.63% 18.28% 19.26% 18.18% 16.42%

Common Size Balance Sheet - TATA MOTORS LTD

Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Equity Share Capital 0.50% 0.86% 1.52% 1.38% 1.37% 2.58% 2.31% 1.98% 1.80% 1.66%
Reserves 77.67% 75.67% 80.69% 81.59% 80.45% 74.68% 68.98% 69.04% 62.75% 58.86%
Borrowings 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 5.05% 4.95% 4.69% 6.66%
Other Liabilities 21.83% 23.46% 17.78% 17.04% 18.18% 22.74% 23.66% 24.03% 30.76% 32.82%
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Net Block 14.71% 17.12% 17.82% 17.05% 15.85% 18.69% 25.91% 23.72% 22.10% 23.46%
Capital Work in Progress 1.69% 1.17% 1.28% 1.64% 2.02% 1.65% 1.04% 0.86% 0.36% 0.23%
Investments 7.60% 3.42% 2.52% 19.75% 15.33% 13.40% 9.58% 13.21% 17.41% 15.63%
Other Assets 15.79% 17.83% 19.75% 19.52% 25.26% 25.35% 23.02% 21.27% 25.72% 30.50%
Receivables 14.66% 14.65% 15.09% 14.82% 16.56% 17.64% 20.14% 17.95% 19.45% 20.41%
Cash & Bank 45.55% 45.81% 43.54% 27.21% 24.98% 23.28% 20.31% 22.99% 14.97% 9.77%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
 Ratio Analysis
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Trends Mean Median

Sales Growth 7.49% 15.53% 9.11% 3.21% 15.88% 9.39% 9.70% 20.71% 20.60% 12.40% 9.70%
EBITDA Growth 13.88% 10.17% 7.18% 2.09% 4.18% 8.71% 19.50% 12.19% 12.06% 9.99% 10.17%
EBT Growth 17.10% 8.31% 6.45% 1.48% 3.83% 4.58% 20.39% 12.97% 10.77% 9.54% 8.31%
Net Profit Growth 15.79% 8.85% 6.38% 11.35% -3.73% 7.91% 15.99% 13.86% 9.00% 9.49% 9.00%
Dividend Growth 87.96% -18.49% 6.19% 68.96% -2.58% -17.39% 54.37% 14.87% 9.68% 22.62% 9.68%

Gross Margin 39.40% 40.46% 38.57% 37.96% 37.44% 35.45% 33.78% 33.43% 31.67% 29.89% 35.80% 36.45%
EBITDA Margin 30.82% 32.66% 31.14% 30.59% 30.26% 27.20% 27.03% 29.45% 27.37% 25.43% 29.19% 29.85%
Opearting Margin 28.33% 30.86% 28.92% 28.21% 27.73% 24.85% 23.94% 26.26% 24.56% 22.60% 26.63% 27.00%
EBT Margin 28.31% 30.84% 28.92% 28.21% 27.73% 24.85% 23.76% 26.07% 24.40% 22.41% 26.55% 26.90%
Net Profit Margin 20.60% 22.19% 20.91% 20.38% 21.99% 18.27% 18.02% 19.06% 17.98% 16.25% 19.56% 19.72%

Sales Expense % Sales 8.57% 7.80% 7.43% 7.37% 7.19% 8.25% 6.75% 3.99% 4.30% 4.46% 6.61% 7.28%
Depriciation % Sales 2.49% 1.79% 2.23% 2.38% 2.52% 2.35% 3.09% 3.18% 2.80% 2.83% 2.57% 2.51%
Operating Income % Sales 28.33% 30.86% 28.92% 28.21% 27.73% 24.85% 23.94% 26.26% 24.56% 22.60% 26.63% 27.00%

Return On Capital Employed 24.42% 24.82% 22.20% 21.14% 25.01% 24.07% 24.07% 23.96% 27.56% 29.01% 24.62% 24.25%
Retained Earning % 66.86% 45.94% 59.52% 59.59% 41.70% 41.00% 55.97% 41.38% 41.61% 42.06% 49.56% 44.00%
Return On Equity % 24.42% 24.82% 22.20% 21.14% 25.01% 24.07% 25.77% 25.63% 29.57% 32.20% 25.48% 24.91%
Self Sustained Growth Rate 16.33% 11.40% 13.21% 12.60% 10.43% 9.87% 14.42% 10.60% 12.30% 13.55% 12.47% 12.45%
Interest Coverage Ratio 1661.78x 1459.58x 0.00x 0.00x 0.00x 0.00x 131.80x 138.29x 152.21x 118.95x 366.26x 125.38x

Creditor Turnover Ratio 4.25x 3.65x 4.91x 5.05x 5.12x 4.48x 4.31x 3.97x 3.45x 3.66x 4.28x 4.28x
Debtor Turnover Ratio 6.32x 5.84x 5.79x 5.81x 5.62x 5.77x 5.06x 5.32x 5.46x 5.88x 5.69x 5.78x
Fixed Asset Ratio 6.30x 5.00x 4.90x 5.05x 5.87x 5.45x 3.93x 4.03x 4.80x 5.11x 5.04x 5.02x
Capital Turnover Ratio 1.19x 1.12x 1.06x 1.04x 1.14x 1.32x 1.43x 1.34x 1.64x 1.98x 1.33x 1.25x

Payable Days 86 Days 100 Days 74 Days 72 Days 71 Days 82 Days 85 Days 92 Days 106 Days 100 Days 87 Days 85 Days
Debtor Days 58 Days 62 Days 63 Days 63 Days 65 Days 63 Days 72 Days 69 Days 67 Days 62 Days 64 Days 63 Days
Cash Conversion Cycle -28 Days -38 Days -11 Days -9 Days -6 Days -18 Days -13 Days -23 Days -39 Days -38 Days -22 Days -21 Days

CFO/Sales 18.61% 14.72% 15.30% 16.12% 17.90% 17.35% 18.17% 22.62% 19.27% 15.03% 17.51% 17.62%
CFO/Total Assets 17.25% 12.60% 13.35% 13.87% 16.66% 17.65% 18.52% 21.60% 20.46% 18.03% 17.00% 17.45%
CFO/Total Debt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 367.00% 436.13% 436.34% 270.72% 151.02% 0.00%
 FORECASTING
INFOSYS LTD - Sales Forecasting INFOSYS LTD - EBITDA Forecasting INFOSYS LTD - EBT Forecasting INFOSYS LTD - EPS Forecasting
Years Weight Years Sales Sales Growth Years Weight Years EBITDA EBITDA Growth Years Weight Years EBT EBT Growth Years Weight Years EPS EPS Growth
1 2014A 52,797.0 1 2014A 16,273.0 1 2014A 14947.0 1 2014A 23.8
2 2015A 56,749.0 7.49% 2 2015A 18,532.0 13.88% 2 2015A 17503.0 17.10% 2 2015A 27.4 15.22%
3 2016A 65,561.0 15.53% 3 2016A 20,416.0 10.17% 3 2016A 18957.0 8.31% 3 2016A 29.8 8.84%
4 2017A 71,534.0 9.11% 4 2017A 21,882.0 7.18% 4 2017A 20179.0 6.45% 4 2017A 31.7 6.38%
5 2018A 73,833.0 3.21% 5 2018A 22,340.0 2.09% 5 2018A 20477.0 1.48% 5 2018A 37.2 17.10%
6 2019A 85,557.0 15.88% 6 2019A 23,273.0 4.18% 6 2019A 21262.0 3.83% 6 2019A 35.8 -3.74%
7 2020A 93,594.0 9.39% 7 2020A 25,299.0 8.71% 7 2020A 22236.0 4.58% 7 2020A 39.6 10.70%
8 2021A 1,02,673.0 9.70% 8 2021A 30,233.0 19.50% 8 2021A 26771.0 20.39% 8 2021A 45.9 15.95%
9 2022A 1,23,936.0 20.71% 9 2022A 33,918.0 12.19% 9 2022A 30242.0 12.97% 9 2022A 53.0 15.32%
10 2023A 1,49,468.0 20.60% 10 2023A 38,007.0 12.06% 10 2023A 33498.0 10.77% 10 2023A 58.5 10.53%
11 2024F 1,41,030.6 -5.64% 11 2024F 37,136.5 -2.29% 11 2024F 32,679.1 -2.44% 11 2024F 58.1 -0.78%
12 2025F 1,50,750.7 6.89% 12 2025F 39,340.0 5.93% 12 2025F 34,510.4 5.60% 12 2025F 61.7 6.20%
13 2026F 1,60,470.7 6.45% 13 2026F 41,543.5 5.60% 13 2026F 36,341.7 5.31% 13 2026F 65.3 5.84%
14 2027F 1,70,190.8 6.06% 14 2027F 43,747.0 5.30% 14 2027F 38,172.9 5.04% 14 2027F 68.9 5.52%
15 2028F 1,79,910.9 5.71% 15 2028F 45,950.5 5.04% 15 2028F 40,004.2 4.80% 15 2028F 72.5 5.23%

2,00,000.0 25.00% 50,000.0 25.00% 45000.0 25.00% 80.0 20.00%

20.00% 40000.0 70.0
40,000.0 20.00% 20.00% 15.00%
1,50,000.0 35000.0 60.0
15.00%
15.00% 30000.0 15.00% 50.0
10.00% 30,000.0 10.00%
25000.0
1,00,000.0 10.00% 10.00% 40.0
5.00% 20000.0 5.00%
20,000.0 30.0
5.00% 15000.0 5.00%
50,000.0 0.00% 20.0
10,000.0 10000.0 0.00%
-5.00% 0.00% 0.00% 10.0
5000.0
0.0 -10.00% 0.0 -5.00% 0.0 -5.00% 0.0 -5.00%

Sales Sales Growth EBITDA EBITDA Growth EBT EBT Growth EPS EPS Growth
Weighted Average Cost of Capital

All Figures are in INR unless stated otherwise

Peer Comps
Debt/ Debt/ Levered Unlevered
1 2
Name Country Total Debt Total Equity Tax Rate Equity Capital Beta Beta 3
TCS India 7,688.0 12,45,907.0 30.00% 0.62% 0.61% 0.93 0.93
Infosys India 8,483.0 5,82,046.1 30.00% 1.46% 1.44% 0.72 0.73
HCL Technologies India 4,794.0 3,20,144.7 30.00% 1.50% 1.48% 0.89 0.90
Wipro India 17,466.6 2,28,434.9 30.00% 7.65% 7.10% 1.06 1.11
LTIMindtree India 354.0 1,52,095.4 30.00% 0.23% 0.23% 1.08 1.08

Average 30.00% 2.29% 2.17% 0.94 0.95

Median 30.00% 1.46% 1.44% 0.93 0.93

Cost Of Debt Cost Of Equity

Pre Tax Cost Of Debt 4.14% Risk Free Rate 7.16%

Tax Rate 30.00% Equity Risk Premium 8.25%
After Tax Cost Of Debt 2.90% Levered Beta 4 0.95
Cost Of Equity 14.97%

Capital Strcture Levered Beta

Current Target
Total Debt 8,483.0 1.44% 2.17% Comps Median Unlevered Beta 0.93
Market Capitalization 5,82,046.1 98.56% 97.83% Target Debt/Equity 2.22%
Total Capitalization 5,90,529.1 100.00% 100.00% Tax Rate 30.00%
Levered Beta 0.95
Debt/Equity 1.46% 2.22%
Weighted Average Cost Of Capiatal
Notes Total Cost Total Weight
1. Tax Rate considered as the Marginal Tax Rate for the Country Debt Capital 2.90% 2.17%
2.Levered Beta is based on 5 year monthly data. Equity Capital 14.97% 97.83%
3. Unlevered Beta=Levered Beta/1+(1-Tax Rate)*Debt/Equity Weighted Average Cost Of Capital 14.71%
4. Levered Beta=Unlevered Beta*(1+(1-Tax Rate)*Debt/Equity)
 Intrinstic Growth

Calculation of ROIC Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Current Assets
Trade receivables 14,827.0 18,487.0 19,294.0 22,698.0 25,424.0
Cash Equivalents 19,568.0 18,649.0 24,714.0 17,472.0 12,173.0
Short term loans 241.0 239.0 159.0 248.0 289.0
Other asset items 21,071.0 20,890.0 22,712.0 29,771.0 37,719.0
Total Current Assets 55,707.0 58,265.0 66,879.0 70,189.0 75,605.0

Current Liabilities
Non controlling int 58.0 394.0 431.0 386.0 388.0
Trade Payables 1,655.0 2,852.0 2,645.0 4,134.0 3,865.0
Other liability items 17,405.0 18,471.0 22,759.0 31,385.0 36,637.0
Total Current Liabilities 19,118.0 21,717.0 25,835.0 35,905.0 40,890.0

Net Working Capital 36,589.0 36,548.0 41,044.0 34,284.0 34,715.0

Non Current Assets

Land 1,307.0 1,950.0 2,036.0 2,066.0 2,060.0
Building 10,270.0 15,104.0 16,328.0 16,760.0 17,574.0
Plant Machinery 2,709.0 3,185.0 3,296.0 3,210.0 3,302.0
Equipments 1,101.0 1,265.0 1,371.0 1,427.0 1,482.0
Computers 6,287.0 7,423.0 8,650.0 9,936.0 12,397.0
Furniture n fittings 1,620.0 2,073.0 2,149.0 2,278.0 2,303.0
Vehicles 38.0 69.0 74.0 71.0 70.0
Intangible Assets 3,640.0 5,527.0 6,372.0 6,495.0 7,595.0
Other fixed assets 1,093.0 2,289.0 2,730.0 2,766.0 3,281.0
Gross Block 28,065.0 38,885.0 43,006.0 45,009.0 50,064.0
Accumulated Depreciation 12,355.0 15,096.0 17,501.0 19,209.0 20,839.0
# Net Non Current Assets 15,710.0 23,789.0 25,505.0 25,800.0 29,225.0

Invested Capital 52,299.0 60,337.0 66,549.0 60,084.0 63,940.0

EBIT 21,262.0 22,406.0 26,966.0 30,442.0 33,782.0

ROIC 40.65% 37.13% 40.52% 50.67% 52.83%

Calculation of Reinvested Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Net Capex 2,760.0 1,998.0 2,445.0 3,307.0 2,107.0

Change in Working Capital (762.0) 447.0 862.0 (1,200.0)

EBIT 21,262.0 22,406.0 26,966.0 30,442.0 33,782.0

Marginal Tax 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-T) 15,946.5 16,804.5 20,224.5 22,831.5 25,336.5

Reinvestment 1,236.0 2,892.0 4,169.0 907.0

Reinvestment Rate 7.36% 14.30% 18.26% 3.58%

4 Year Average 10.87%

4 Year Median 10.83%

Calculation of Growth Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Reinvestment Rate 7.36% 14.30% 18.26% 3.58%

ROIC 37.13% 40.52% 50.67% 52.83%

Intrinsic Growth 2.73% 5.79% 9.25% 1.89%

4 Year Average 4.92%

4 Year Median 4.26%
 Free Cash Flow to the Firm
0 0.5 1.5 2.5 3.5 4.5
Calculation of PV of FCFF Mar-23A Mar-24F Mar-25F Mar-26F Mar-27F Mar-28F

EBIT 33,782.0 38,893.2 44,777.8 51,552.6 59,352.5 68,332.6

Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%

EBIT(1-T) 25,336.5 29,169.9 33,583.3 38,664.5 44,514.4 51,249.4

Less:Reinvestment Rate 10.83% 20.38% 29.94% 39.49% 49.05% 58.60%

Free Cash Flow to Firm 28,079.8 35,115.3 43,637.0 53,933.4 66,346.7 81,281.6

Discounting Factor 1.000 0.934 0.814 0.710 0.619 0.539

PV of FCFF 28,079.8 32,786.5 35,518.1 38,269.3 41,040.1 43,830.7

Expected Growth 15.13%

Terminal Growth 6.10%

Calculation Of Terminal Value Senstivity Analysis

8,05,579.6 12.71% 13.71% 14.71% 15.71%
FCFF(1+n) 93,579.5 3.90% 8,48,676.9 7,59,104.5 6,86,346.5 6,26,121.0
WACC 14.71% 5.10% 9,46,439.0 8,33,680.0 7,44,638.2 6,72,596.8
Terminal Growth 6.10% 6.10% 10,55,022.5 9,13,792.3 8,05,626.8 7,20,193.1
6.90% 11,68,801.5 9,94,822.1 8,65,662.7 7,66,049.8
Terminal Value 10,86,807.7 7.90% 13,64,248.3 11,27,489.4 9,60,543.2 8,36,581.6

Calculation Of Enterprise Value Senstivity Analysis

2,086.6 12.71% 13.71% 14.71% 15.71%
PV of FCFF 2,19,524.4 3.90% 2,190.5 1,974.6 1,799.2 1,654.1
PV of Terminal Value 5,86,055.2 5.10% 2,426.2 2,154.4 1,939.7 1,766.1
Value of Operating Asset 8,05,579.6 6.10% 2,687.9 2,347.5 2,086.8 1,880.8
7.90% 3,433.3 2,862.6 2,460.2 2,161.4
Add:Cash 68,382.0
Less:Debt 8,299.0
Value of Equity 8,65,662.6
Number of Shares 414.86
Value Per Share 2,086.6
 Comparable Company Valuation

Market Data Financials Valuation

Share Share Equity Enterprise
Company Ticker Price Outstanding Value Net Debt Value Revenue EBITDA Net Income EV/Revenue EV/EBITDA P/E

Infosys INFY 1,404.9 415.0 5,83,089.7 3,690.0 5,79,399.7 1,50,230.0 39,414.9 24,108.0 3.86x 14.70x 24.19x
TCS TCS 3,401.8 365.9 12,44,734.3 3,344.0 12,41,390.3 2,32,081.0 64,892.3 42,303.0 5.35x 19.13x 29.42x
HCL Technologies HCLTECH 1,178.7 271.4 3,19,863.8 9,930.0 3,09,933.8 1,04,288.0 24,308.5 14,845.0 2.97x 12.75x 21.55x
Wipro WIPRO 414.4 549.0 2,27,474.0 (8,278.6) 2,35,752.6 91,790.0 19,629.7 11,366.5 2.57x 12.01x 20.01x
LTIMindtree LTIM 5,145.3 29.6 1,52,247.9 2,578.0 1,49,669.9 34,240.9 6,760.2 4,410.3 4.37x 22.14x 34.52x
Tech Mahindra TECHM 1,216.0 97.5 1,18,518.6 1,514.5 1,17,004.1 53,741.3 8,263.0 4,857.0 2.18x 14.16x 24.40x
L&T Technology LTTS 4,344.4 10.6 45,919.8 235.7 45,684.1 8,715.7 2,005.4 1,174.1 5.24x 22.78x 39.11x
Mphasis MPHASIS 2,323.0 18.9 43,788.6 855.0 42,933.6 13,639.3 2,597.3 1,637.9 3.15x 16.53x 26.73x
Tata Elxsi TATAELXSI 7,015.4 6.2 43,705.6 1,006.9 42,698.7 3,269.1 1,060.6 755.2 13.06x 40.26x 57.87x
Persistent Sys PERSISTENT 5,011.8 7.6 38,290.2 247.9 38,042.2 8,793.7 1,630.6 921.1 4.33x 23.33x 41.57x

High 13.06x 40.26x 57.87x

75 Percentile 5.02x 22.62x 37.96x
Median 4.09x 17.83x 28.08x
25 Percentile 3.02x 14.30x 24.24x
Low 2.18x 12.01x 20.01x

Infosys Comparable Valuation EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 6,14,654.8 7,02,768.5 6,80,624.5

Net Debt 3,690.0 3,690.0 3,690.0
Implied Market Value 6,10,964.8 6,99,078.5 6,76,934.5
Share Outstanding 415.0 415.0 415.0

Implied Value Per Share 1,472.1 1,684.4 1,631.0

Source: The Valuation School
Undervalued Undervalued Undervalued
 Football Field Analysis

Football Field Analysis - Data Football Field Analysis - Valuation Summary

Open Low Low Open High High
Comps 1,472.1 1,472.1 1,684.4 1,684.4 ₹ 4,000.0
DCF Bear 1,654.1 1,654.1 2,161.4 2,161.4 3,433.3
₹ 3,500.0
DCF Base 1,799.2 1,799.2 2,460.2 2,460.2
DCF Bull 2,190.5 2,190.5 3,433.3 3,433.3 ₹ 3,000.0
52 W H/L 1,185.0 1,185.0 1,673.0 1,673.0 2,460.2
₹ 2,500.0
2,161.4

₹ 2,000.0 1,684.4 2,190.5 1,673.0

₹ 1,500.0 1,799.2
1,654.1
1,472.1
₹ 1,000.0 1,185.0

₹ 500.0

₹ 0.0
Comps DCF Bear DCF Base DCF Bull 52 W H/L
 Infosys - Valuation at Risk

Date Adj Close Return Sorted Return Replication Stimulated Return Calculation of Valuation at Risk -Historical Method
09-04-2003 64.97 -0.82 0.37 1 0.02
11-04-2013 364.73 -0.52 0.27 2 0.01 Average -0.01%
18-10-2019 767.75 11.74 0.19 3 0.04 Standard Variation 2.37%
10-04-2001 60.25 0.27 0.19 4 0.03 Min -14.46%
10-04-2003 47.57 -0.46 0.16 5 0.01 Max 36.57%
01-03-2001 88.79 -0.74 0.15 6 -0.01 CMP 1405
12-04-2012 343.76 5.79 0.14 7 0.01
11-04-2001 50.61 -0.13 0.14 8 -0.01 Percentile Confidence VAR% Stock Price VAR(INR)
02-07-2001 58.17 -0.74 0.14 9 -0.02 5.0% 95.00% -3.37% 1,452.4 -47.4
18-05-2009 221.23 2.88 0.13 10 -0.01 3.0% 97.00% -4.32% 1,465.7 -60.7
26-04-2001 57.06 -0.57 0.13 11 0.01 2.0% 98.00% -5.16% 1,477.5 -72.5
05-05-2000 132.81 0.67 0.13 12 0.03 0.5% 99.50% -7.41% 1,509.1 -104.1
14-05-2004 79.40 0.34 0.12 13 -0.02 10.0% 90.00% -2.33% 1,437.8 -32.8
14-06-2001 59.43 0.55 0.12 14 -0.01
20-09-2001 38.39 -0.16 0.11 15 0.00
14-09-2001 45.45 -0.92 0.11 16 0.02
20-03-2020 584.95 0.15 0.11 17 0.02
17-08-2017 510.58 0.24 0.11 18 -0.01
13-04-2011 413.25 -0.70 0.11 19 -0.04
13-04-2023 1388.60 1.16 0.10 20 -0.02
13-03-2020 642.20 5.57 0.10 21 0.02
28-02-2001 97.79 0.79 0.10 22 -0.03
11-09-2001 54.70 -0.46 0.10 23 -0.01
19-05-2000 100.89 -0.83 0.10 24 0.05
14-07-2016 587.92 0.28 0.10 25 0.04
12-03-2014 458.86 10.43 0.09 26 0.04
26-09-2001 40.15 -0.89 0.09 27 -0.02
11-01-2012 353.25 -0.76 0.09 28 0.00 Calculation of Valuation at Risk -Monte Carlo Method
20-07-2023 1448.85 18.22 0.09 29 0.00
08-01-2002 75.39 -0.76 0.09 30 -0.01 Average -0.06%
11-07-2012 308.29 1.22 0.09 31 -0.04 Standard Variation 2.34%
31-03-2000 139.09 -0.12 0.09 32 0.02 Min -10.67%
12-04-2000 157.31 0.19 0.09 33 0.00 Max 10.92%
04-01-2000 132.11 0.18 0.09 34 0.00 CMP 1405
06-01-2000 111.82 -0.34 0.09 35 0.03
13-03-2000 168.19 0.38 0.09 36 -0.04 Percentile Confidence VAR% Stock Price VAR(INR)
05-01-2000 121.54 -0.16 0.09 37 -0.03 5.0% 95.00% -3.93% 1,460.3 -55.3
13-04-2000 144.72 -0.04 0.09 38 0.01 3.0% 97.00% -4.53% 1,468.7 -63.7
30-03-2000 151.19 0.00 0.09 39 -0.03 2.0% 98.00% -4.91% 1,474.1 -69.1
15-03-2000 151.68 0.42 0.09 40 0.00 0.5% 99.50% -6.12% 1,491.0 -86.0
10-01-2000 107.03 -0.16 0.09 41 0.01 10.0% 90.00% -3.02% 1,447.4 -42.4
03-04-2000 127.97 -0.30 0.09 42 -0.03
10-03-2000 182.81 0.17 0.09 43 0.03
22-02-2000 156.09 0.27 0.09 44 0.00
18-04-2000 122.77 -0.17 0.09 45 -0.01
24-02-2000 148.35 0.32 0.09 46 0.00
25-07-2000 112.21 1.27 0.09 47 0.03
13-09-2001 49.38 -0.18 0.09 48 -0.01
27-02-2002 59.90 -0.91 0.09 49 -0.02
11-03-2020 685.15 0.73 0.08 50 0.03
28-05-2014 396.52 1.98 0.08 51 0.01
17-04-2000 133.14 1.01 0.08 52 -0.02
29-05-2001 66.31 -0.32 0.08 53 -0.03
21-12-2000 98.08 0.30 0.08 54 0.02
09-03-2001 75.27 0.00 0.08 55 0.06
09-01-2003 74.94 -0.26 0.08 56 0.01
12-01-2000 101.57 0.47 0.08 57 0.01
29-03-2001 68.93 -0.96 0.08 58 -0.04