Financial Model Report

NSE: INFY | BSE CODE 500209

Note: This report is made for educational purposes only and should
not be used for taking investment decisions.
 Table of Contents

• One Page Company Profile

• Historical Financial Statements
• Common Size Statements
• Ratio Analysis
• Cash Flow Statement
• Forecasting
• Beta Regression
• Weighted Average Cost of Capital (WACC)
• Intrinsic Growth
• DCF Valuation
• Comparable Company Valuation
Infosys Ltd.
BSE: 500209 | NSE: INFY

ONE PAGE PROFILE

Infosys Limited is an Indian multinational information technology company that offers business consulting, information
technology, and outsourcing services. Founded in Pune, the company is headquartered in Bangalore.[6] As of 2020,
Infosys is the second-largest Indian IT company by revenue, following Tata Consultancy Services.

INR (Cr)
Key Financial Metrics Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Share Price - 5Y
Total Sales ₹ 90,791.0 ₹ 100,472.0 ₹ 121,641.0 ₹ 146,767.0 ₹ 153,670.0
Sales Growth (%) 9.82% 10.66% 21.07% 20.66% 4.70%
1600
Gross Profit Margins (%) 31.48% 31.83% 30.27% 28.54% 28.40%
EBITDA Margins (%) 24.53% 27.76% 25.89% 23.94% 23.70% 1100
EBIT Margins (%) 21.34% 24.51% 23.03% 21.06% 20.66%
Net Profit Margins (%) 15.24% 17.14% 16.32% 14.59% 14.02% 600
Earnings Per Shares (in Rs) ₹ 32.5 ₹ 40.4 ₹ 47.2 ₹ 51.6 ₹ 51.9
EPS Growth (y-o-y) 13.29% 24.42% 16.74% 9.35% 0.55% 100
Divinded Per Shares (in Rs) ₹ 17.4 ₹ 26.9 ₹ 30.9 ₹ 33.9 ₹ 45.9

2019
2019
2020
2020
2020
2021
2021
2021
2022
2022
2022
2023
2023
2023
2023
2024
DPS Growth (y-o-y) 53.68% 66.60% 65.53% 65.72% 88.47%

Key Financial Ratios Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Volumes - 5Y

80 M
Price to Earnings 16.46x 30.12x 36.28x 24.59x 23.70x
EV/EBITDA Ratio 11.64x 20.20x 25.09x 16.75x 16.89x 60 M
EV/Sales 2.85x 5.61x 6.50x 4.01x 4.00x
40 M
Price to Book Value 4.17x 7.63x 10.65x 7.86x 7.06x #
Return on Equity (%) 25.35% 25.34% 29.34% 31.95% 29.77% # 20 M
Return on Capital Employed (%) 32.85% 35.35% 37.30% 40.85% 40.47% #
0M

2019
2019
2020
2020
2020
2021
2021
2021
2022
2022
2022
2023
2023
2023
2023
2024
Top 10 Shareholders No. Share (in Crs) % Holding Market Value (in Crs) Sharholding Pattern
Life Insurance Corporation of India 40 10.81% 76769
SBI MUTUAL FUND 17 4.54% 32222 Other 0.27%
ICICI PRUDENTIAL MUTUAL FUND 12 3.27% 23194 Government 0.21%
SUDHA GOPALAKRISHNAN 10 2.55% 18137
Public 14.91%
HDFC MUTUAL FUND 7 1.90% 13472
DIIS 37.28%
National Pension System Trust 7 1.84% 13042
UTI MUTUAL FUND 7 1.77% 12576 FIIS 32.74%
ROHAN MURTY 6 1.63% 11567 Promoter 14.61%
GOVERNMENT OF SINGAPORE 6 1.48% 10519
0.00% 10.00% 20.00% 30.00% 40.00%
GOVERNMENT PENSION FUND GLOBAL 5 1.38% 9782

Managerial Remuneration Designation Remuneration X of Median Salary Capital Structure

Mr. Salil Parekh CEO & MD 66.25 677x Share Price as on xxx 1,465.1
Mr. Jayesh Sanghrajka CFO 6.1 62x Number of Share o/s 415.1
Mr. Dinesh R. Executive VP 4.6 47x Market Capitalization 608,143.6
Mr. Satish H. C. Executive VP 4 41x Less : Cash & Equivalents (14,786.0)
Notes : Add : Total Debt 8,359.0
1. Median Remuneration of employees - Increased by 8.65% Add : Minority Interest 388
2. Remuneration to KMP includes fixed pay, variable pay, retiral benefits and stock incentives Enterprise Value 602,104.6
Infosys Ltd.
BSE: 500209 | NSE: INFY

Histrocial Financial Statement

Income Statement
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales ₹ 53,319.0 ₹ 62,441.0 ₹ 68,484.0 ₹ 70,522.0 ₹ 82,675.0 ₹ 90,791.0 ₹ 100,472.0 ₹ 121,641.0 ₹ 146,767.0 ₹ 153,670.0
Sales Growth - 17.11% 9.68% 2.98% 17.23% 9.82% 10.66% 21.07% 20.66% 4.70%

COGS ₹ 34,009.0 ₹ 40,492.0 ₹ 44,609.0 ₹ 46,395.0 ₹ 55,446.0 ₹ 62,210.0 ₹ 68,490.0 ₹ 84,819.0 ₹ 104,880.0 ₹ 110,030.0
COGS % Sales 63.78% 64.85% 65.14% 65.79% 67.07% 68.52% 68.17% 69.73% 71.46% 71.60%

Gross Profit ₹ 19,310.0 ₹ 21,949.0 ₹ 23,875.0 ₹ 24,127.0 ₹ 27,229.0 ₹ 28,581.0 ₹ 31,982.0 ₹ 36,822.0 ₹ 41,887.0 ₹ 43,640.0
Gross Profit % Sales 36.22% 35.15% 34.86% 34.21% 32.93% 31.48% 31.83% 30.27% 28.54% 28.40%

Selling & General Expenses ₹ 4,427.0 ₹ 4,870.0 ₹ 5,271.0 ₹ 5,305.0 ₹ 7,059.0 ₹ 6,314.0 ₹ 4,093.0 ₹ 5,331.0 ₹ 6,757.0 ₹ 7,215.0
S&G Exp % Sales 8.30% 7.80% 7.70% 7.52% 8.54% 6.95% 4.07% 4.38% 4.60% 4.70%

EBITDA ₹ 14,883.0 ₹ 17,079.0 ₹ 18,604.0 ₹ 18,822.0 ₹ 20,170.0 ₹ 22,267.0 ₹ 27,889.0 ₹ 31,491.0 ₹ 35,130.0 ₹ 36,425.0
EBIDA Margins 27.91% 27.35% 27.17% 26.69% 24.40% 24.53% 27.76% 25.89% 23.94% 23.70%

Interest ₹ 12.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 170.0 ₹ 195.0 ₹ 200.0 ₹ 284.0 ₹ 470.0
Interest on Sales 0.02% 0.00% 0.00% 0.00% 0.00% 0.19% 0.19% 0.16% 0.19% 0.31%

Depreciation ₹ 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 ₹ 4,678.0
Depreciation % Sales 1.91% 2.34% 2.49% 2.64% 2.43% 3.19% 3.25% 2.86% 2.88% 3.04%

Earning Before Tax ₹ 13,854.0 ₹ 15,620.0 ₹ 16,901.0 ₹ 16,959.0 ₹ 18,159.0 ₹ 19,204.0 ₹ 24,427.0 ₹ 27,815.0 ₹ 30,621.0 ₹ 31,277.0
EBT % Sales 25.98% 25.02% 24.68% 24.05% 21.96% 21.15% 24.31% 22.87% 20.86% 20.35%

Tax ₹ 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 ₹ 9,740.0
Effective Tax Rate 9.21% 8.41% 8.17% 6.01% 6.81% 5.91% 7.17% 6.55% 6.28% 6.34%

Net Profit ₹ 8,943.0 ₹ 10,369.0 ₹ 11,303.0 ₹ 12,718.0 ₹ 12,528.0 ₹ 13,836.0 ₹ 17,222.0 ₹ 19,851.0 ₹ 21,407.0 ₹ 21,537.0
Net Margins 16.77% 16.61% 16.50% 18.03% 15.15% 15.24% 17.14% 16.32% 14.59% 14.02%

No. of Equity Share ₹ 459.4 ₹ 459.4 ₹ 459.4 ₹ 436.8 ₹ 436.9 ₹ 425.9 ₹ 426.1 ₹ 420.7 ₹ 414.9 ₹ 415.1

Earning Per Share ₹ 19.5 ₹ 22.6 ₹ 24.6 ₹ 29.1 ₹ 28.7 ₹ 32.5 ₹ 40.4 ₹ 47.2 ₹ 51.6 ₹ 51.9
EPS Growth % - 15.94% 9.01% 18.33% -1.51% 13.29% 24.42% 16.74% 9.35% 0.55%

Dividend Per Share ₹ 14.8 ₹ 12.1 ₹ 12.8 ₹ 21.7 ₹ 21.1 ₹ 17.4 ₹ 26.9 ₹ 30.9 ₹ 33.9 ₹ 45.9
Dividend Payout Ratio 76.11% 53.51% 52.12% 74.43% 73.62% 53.68% 66.60% 65.53% 65.72% 88.47%

Retained Earning 23.89% 46.49% 47.88% 25.57% 26.38% 46.32% 33.40% 34.47% 34.28% 11.53%

Balance Sheet
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Equity Share ₹ 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 ₹ 2,071.0
Reserves ₹ 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 ₹ 86,045.0
Borrowings ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 4,633.0 ₹ 5,325.0 ₹ 5,474.0 ₹ 8,299.0 ₹ 8,359.0
Other Liabilities ₹ 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 ₹ 39,545.0
Total Liabilities ₹ 66,289.0 ₹ 75,098.0 ₹ 83,148.0 ₹ 79,349.0 ₹ 84,066.0 ₹ 91,800.0 ₹ 107,511.0 ₹ 116,729.0 ₹ 124,596.0 ₹ 136,020.0

Fixed Assets Net Block ₹ 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 ₹ 27,622.0
Capital Work in Progress ₹ 776.0 ₹ 960.0 ₹ 1,365.0 ₹ 1,606.0 ₹ 1,388.0 ₹ 954.0 ₹ 922.0 ₹ 416.0 ₹ 288.0 ₹ 293.0
Investment ₹ 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 ₹ 24,623.0
Other Assets ₹ 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 ₹ 38,503.0
Total Non Current Assets ₹ 26,209.0 ₹ 31,071.0 ₹ 48,201.0 ₹ 46,389.0 ₹ 49,671.0 ₹ 54,664.0 ₹ 63,503.0 ₹ 76,559.0 ₹ 86,999.0 ₹ 91,041.0

Receivables ₹ 9,713.0 ₹ 11,330.0 ₹ 12,322.0 ₹ 13,142.0 ₹ 14,827.0 ₹ 18,487.0 ₹ 19,294.0 ₹ 22,698.0 ₹ 25,424.0 ₹ 30,193.0
Inventory ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Cash & Bank ₹ 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 ₹ 14,786.0
Total Current Assets ₹ 40,080.0 ₹ 44,027.0 ₹ 34,947.0 ₹ 32,960.0 ₹ 34,395.0 ₹ 37,136.0 ₹ 44,008.0 ₹ 40,170.0 ₹ 37,597.0 ₹ 44,979.0

Total Assets ₹ 66,289.0 ₹ 75,098.0 ₹ 83,148.0 ₹ 79,349.0 ₹ 84,066.0 ₹ 91,800.0 ₹ 107,511.0 ₹ 116,729.0 ₹ 124,596.0 ₹ 136,020.0

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
Infosys Ltd.
BSE: 500209 | NSE: INFY

Common Size Statement

Income Statement
Particular Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Change in Inventory 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Power and Fuel 0.41% 0.35% 0.33% 0.29% 0.27% 0.25% 0.14% 0.11% 0.12% 0.13%
Other Mfr. Exp 7.46% 9.38% 9.80% 10.33% 11.98% 12.21% 12.74% 17.01% 17.94% 17.70%
Employee Cost 55.91% 55.12% 55.00% 55.16% 54.82% 56.06% 55.29% 52.61% 53.40% 53.77%
Selling and admin 6.35% 7.11% 6.69% 6.50% 6.72% 5.92% 3.18% 3.54% 3.61% 3.71%
Other Expenses 1.95% 0.69% 1.00% 1.02% 1.82% 1.03% 0.89% 0.84% 0.99% 0.98%
Other Income 6.43% 5.00% 4.45% 4.69% 3.49% 3.09% 2.19% 1.89% 1.84% 3.07%
Depreciation 1.91% 2.34% 2.49% 2.64% 2.43% 3.19% 3.25% 2.86% 2.88% 3.04%
Interest 0.02% 0.00% 0.00% 0.00% 0.00% 0.19% 0.19% 0.16% 0.19% 0.31%
Profit before tax 32.42% 30.01% 29.13% 28.74% 25.45% 24.24% 26.50% 24.75% 22.70% 23.42%
Tax 9.21% 8.41% 8.17% 6.01% 6.81% 5.91% 7.17% 6.55% 6.28% 6.34%
Net profit 23.20% 21.60% 20.96% 22.73% 18.63% 18.28% 19.26% 18.18% 16.42% 17.07%
Dividend Amount 12.77% 8.89% 8.60% 13.42% 11.16% 8.18% 11.42% 10.69% 9.59% 12.40%

Balance Sheet
Particular Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilites 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.86% 1.52% 1.38% 1.37% 2.58% 2.31% 1.98% 1.80% 1.66% 1.52%
Reserves 75.67% 80.69% 81.59% 80.45% 74.68% 68.98% 69.04% 62.75% 58.86% 63.26%
Borrowings 0.00% 0.00% 0.00% 0.00% 0.00% 5.05% 4.95% 4.69% 6.66% 6.15%
Other Liabilities 23.46% 17.78% 17.04% 18.18% 22.74% 23.66% 24.03% 30.76% 32.82% 29.07%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 17.12% 17.82% 17.05% 15.85% 18.69% 25.91% 23.72% 22.10% 23.46% 20.31%
Capital Work in Progress 1.17% 1.28% 1.64% 2.02% 1.65% 1.04% 0.86% 0.36% 0.23% 0.22%
Investments 3.42% 2.52% 19.75% 15.33% 13.40% 9.58% 13.21% 17.41% 15.63% 18.10%
Other Assets 17.83% 19.75% 19.52% 25.26% 25.35% 23.02% 21.27% 25.72% 30.50% 28.31%
Receivables 14.65% 15.09% 14.82% 16.56% 17.64% 20.14% 17.95% 19.45% 20.41% 22.20%
Inventory 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Cash & Bank 45.81% 43.54% 27.21% 24.98% 23.28% 20.31% 22.99% 14.97% 9.77% 10.87%
Infosys Ltd.
BSE: 500209 | NSE: INFY

Ratio Analysis
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trend Mean Median
Sales Growth - 17.11% 9.68% 2.98% 17.23% 9.82% 10.66% 21.07% 20.66% 4.70% 12.66% 10.66%
EBITDA Growth - 14.76% 8.93% 1.17% 7.16% 10.40% 25.25% 12.92% 11.56% 3.69% 10.65% 10.40%
EBT Growth - 12.75% 8.20% 0.34% 7.08% 5.75% 27.20% 13.87% 10.09% 2.14% 9.71% 8.20%
Net Profit Growth - 15.95% 9.01% 12.52% -1.49% 10.44% 24.47% 15.27% 7.84% 0.61% 10.51% 10.44%
Dividend Growth - -18.49% 6.19% 68.96% -2.58% -17.39% 54.37% 14.87% 9.68% 35.35% 16.77% 9.68%

Gross Margin 36.22% 35.15% 34.86% 34.21% 32.93% 31.48% 31.83% 30.27% 28.54% 28.40% 32.39% 32.38%
EBITDA Margin 27.91% 27.35% 27.17% 26.69% 24.40% 24.53% 27.76% 25.89% 23.94% 23.70% 25.93% 26.29%
EBIT Margin 26.01% 25.02% 24.68% 24.05% 21.96% 21.34% 24.51% 23.03% 21.06% 20.66% 23.23% 23.54%
EBT Margin 25.98% 25.02% 24.68% 24.05% 21.96% 21.15% 24.31% 22.87% 20.86% 20.35% 23.12% 23.46%
Net Profit Margin 16.77% 16.61% 16.50% 18.03% 15.15% 15.24% 17.14% 16.32% 14.59% 14.02% 16.04% 16.41%

S&G Exp % Sales 8.30% 7.80% 7.70% 7.52% 8.54% 6.95% 4.07% 4.38% 4.60% 4.70% 6.46% 7.24%
Depreciation & Sales 1.91% 2.34% 2.49% 2.64% 2.43% 3.19% 3.25% 2.86% 2.88% 3.04% 2.70% 2.75%
Operating Income % Sales 26.01% 25.02% 24.68% 24.05% 21.96% 21.34% 24.51% 23.03% 21.06% 20.66% 23.23% 23.54%

Return on Capital Employed 27.33% 25.30% 24.50% 26.12% 27.96% 27.64% 30.15% 34.66% 36.92% 32.91% 29.35% 27.80%
Retained Earning 23.89% 46.49% 47.88% 25.57% 26.38% 46.32% 33.40% 34.47% 34.28% 11.53% 33.02% 33.84%
Return on Equity % 17.63% 16.79% 16.39% 19.59% 19.29% 21.14% 22.56% 26.35% 28.39% 24.44% 21.26% 20.36%
Self Sustained Growth Rate 4.21% 7.81% 7.84% 5.01% 5.09% 9.79% 7.53% 9.08% 9.73% 2.82% 6.89% 7.67%
Interest Coverage Ratio 1155.50x 0.00x 0.00x 0.00x 0.00x 113.96x 126.27x 140.08x 108.82x 67.55x 171.22x 88.18x

Debtor Turnover Ratio 5.49x 5.51x 5.56x 5.37x 5.58x 4.91x 5.21x 5.36x 5.77x 5.09x 5.38x 5.43x
Creditor Turnover Ratio 3.43x 4.68x 4.83x 4.89x 4.32x 4.18x 3.89x 3.39x 3.59x 3.89x 4.11x 4.03x
Inventory Turnover Ratio 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x
Fixed Asset Turnover Ratio 4.70x 4.66x 4.83x 5.61x 5.26x 3.82x 3.94x 4.71x 5.02x 5.56x 4.81x 4.77x
Capital Turnover Ratio 1.05x 1.01x 0.99x 1.09x 1.27x 1.39x 1.32x 1.61x 1.95x 1.74x 1.34x 1.29x

Debtor Days 66 66 66 68 65 74 70 68 63 72 68 67
Payable Days 106 78 76 75 84 87 94 108 102 94 90 91
Inventory Days 0 0 0 0 0 0 0 0 0 0 0 0
Cash Convesion Cycle (In Days) -40 -12 -10 -7 -19 -13 -24 -40 -38 -22 -22 -21

CEO/Sales 14.09% 12.94% 13.69% 18.86% 17.40% 16.12% 23.88% 18.46% 10.99% 13.10% 15.95% 15.10%
CEO/Total Assets 11.33% 10.76% 11.28% 16.76% 17.12% 15.94% 22.32% 19.24% 12.94% 14.80% 15.25% 15.37%
CEO/Total Debt 0.00% 0.00% 0.00% 0.00% 0.00% 315.91% 450.55% 410.32% 194.28% 240.79% 161.19% 97.14%
Infosys Ltd.
BSE: 500209 | NSE: INFY

Cash Flow Statement

Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Operating Activities
Profit from operations ₹ 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 ₹ 39,523.0
Receivables ₹ (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) ₹ (2,667.0)
Payables - ₹ 242.0 ₹ (19.0) ₹ 328.0 ₹ 916.0 ₹ (373.0) ₹ (245.0) ₹ 1,489.0 ₹ (279.0) ₹ 91.0
Loans Advances ₹ (221.0) ₹ (1,134.0) - - - - - ₹ (1,914.0) ₹ (3,108.0) ₹ (1,172.0)
Other WC items ₹ 854.0 ₹ 600.0 ₹ (394.0) ₹ 1,279.0 ₹ 1,512.0 ₹ 1,867.0 ₹ 2,848.0 ₹ 6,938.0 ₹ 4,119.0 ₹ (1,334.0)
Working capital changes ₹ (842.0) ₹ (1,946.0) ₹ (2,156.0) ₹ 84.0 ₹ (453.0) ₹ (2,367.0) ₹ 768.0 ₹ (1,424.0) ₹ (6,344.0) ₹ (5,082.0)
Direct taxes ₹ (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) ₹ (9,231.0)
Cash From Operating Activities ₹ 7,511.0 ₹ 8,082.0 ₹ 9,375.0 ₹ 13,302.0 ₹ 14,388.0 ₹ 14,636.0 ₹ 23,992.0 ₹ 22,461.0 ₹ 16,123.0 ₹ 20,128.0

Investing Activities
Fixed assets purchased ₹ (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) ₹ (2,201.0)
Fixed assets sold - - - - - - - - - -
Investments purchased ₹ (23,923.0) ₹ (24,577.0) ₹ (66,410.0) ₹ (69,159.0) ₹ (79,410.0) ₹ (37,482.0) ₹ (46,738.0) ₹ (59,951.0) ₹ (75,800.0) ₹ (78,092.0)
Investments sold ₹ 25,253.0 ₹ 24,980.0 ₹ 52,048.0 ₹ 74,003.0 ₹ 78,098.0 ₹ 38,861.0 ₹ 40,381.0 ₹ 57,356.0 ₹ 76,722.0 ₹ 72,930.0
Interest received ₹ 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 ₹ 1,768.0
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 ₹ 741.0 ₹ (59.0) ₹ (131.0) ₹ 49.0 ₹ 1,592.0 ₹ (224.0) ₹ (120.0) ₹ (3,627.0) ₹ (939.0) ₹ 502.0
Cash From Investing Activities ₹ 999.0 ₹ (885.0) ₹ (14,664.0) ₹ 4,533.0 ₹ (632.0) ₹ (331.0) ₹ (7,373.0) ₹ (6,485.0) ₹ (1,071.0) ₹ (5,093.0)

Financing Activities
Proceeds from shares - - - ₹ 5.0 ₹ 6.0 ₹ 6.0 ₹ 15.0 ₹ 21.0 ₹ 35.0 ₹ 5.0
Dividends paid ₹ (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) ₹ (14,731.0)
Financial liabilities - - - - - ₹ (571.0) ₹ (698.0) ₹ (915.0) ₹ (1,231.0) ₹ (2,024.0)
Other financing items - - - ₹ (13,046.0) ₹ (813.0) ₹ (7,478.0) ₹ 34.0 ₹ (11,017.0) ₹ (11,846.0) ₹ (754.0)
Cash From Financing Activities ₹ (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) ₹ (17,504.0)

Net Cash Flow ₹ 3,575.0 ₹ 384.0 ₹ (12,228.0) ₹ (2,670.0) ₹ (756.0) ₹ (3,286.0) ₹ 6,833.0 ₹ (8,666.0) ₹ (11,643.0) ₹ (2,469.0)
Infosys Ltd.
BSE: 500209 | NSE: INFY

FORCASTING
Sales EBITDA
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth
1 2015A ₹ 53,319.0 - 1 2020A ₹ 14,883.0 -
2 2016A ₹ 62,441.0 17.11% 2 2021A ₹ 17,079.0 14.76%
3 2017A ₹ 68,484.0 9.68% 3 2022A ₹ 18,604.0 8.93%
4 2018A ₹ 70,522.0 2.98% 4 2023A ₹ 18,822.0 1.17%
5 2019A ₹ 82,675.0 17.23% 5 2024A ₹ 20,170.0 7.16%
6 2020A ₹ 90,791.0 9.82% 6 2025A ₹ 22,267.0 10.40%
7 2021A ₹ 100,472.0 10.66% 7 2026A ₹ 27,889.0 25.25%
8 2022A ₹ 121,641.0 21.07% 8 2027A ₹ 31,491.0 12.92%
9 2023A ₹ 146,767.0 20.66% 9 2028A ₹ 35,130.0 11.56%
10 2024A ₹ 153,670.0 4.70% 10 2029A ₹ 36,425.0 3.69%
11 2025E ₹ 156,984.6 2.16% 11 2030E ₹ 38,074.9 4.53%
12 2026E ₹ 168,240.3 7.17% 12 2031E ₹ 41,089.7 7.92%
13 2027E ₹ 179,496.0 6.69% 13 2032E ₹ 44,349.9 7.93%
14 2028E ₹ 190,751.7 6.27% 14 2033E ₹ 47,720.0 7.60%
15 2029E ₹ 202,007.4 5.90% 15 2034E ₹ 50,780.0 6.41%

Sales Growth EBITDA Growth

₹ 250,000.0 ₹ 60,000.0
₹ 200,000.0 ₹ 50,000.0
₹ 150,000.0 ₹ 40,000.0
₹ 30,000.0
₹ 100,000.0
₹ 20,000.0
₹ 50,000.0 ₹ 10,000.0
₹ 0.0 ₹ 0.0
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024A
2025A
2026A
2027A
2028A
2029A

2020A
2021A
2022A
2023A
2024A
2025A
2026A
2027A
2028A
2029A
2030A
2031A
2032A
2033A
2034A
EBT Growth EPS Growth
Year Weight Year EBT EBT Growth Year Weight Year EPS EPS Growth
1 2015A ₹ 13,854.0 - 1 2015A ₹ 19.5 -
2 2016A ₹ 15,620.0 12.75% 2 2016A ₹ 22.6 15.94%
3 2017A ₹ 16,901.0 8.20% 3 2017A ₹ 24.6 9.01%
4 2018A ₹ 16,959.0 0.34% 4 2018A ₹ 29.1 18.33%
5 2019A ₹ 18,159.0 7.08% 5 2019A ₹ 28.7 -1.51%
6 2020A ₹ 19,204.0 5.75% 6 2020A ₹ 32.5 13.29%
7 2021A ₹ 24,427.0 27.20% 7 2021A ₹ 40.4 24.42%
8 2022A ₹ 27,815.0 13.87% 8 2022A ₹ 47.2 16.74%
9 2023A ₹ 30,621.0 10.09% 9 2023A ₹ 51.6 9.35%
10 2024A ₹ 31,277.0 2.14% 10 2024A ₹ 51.9 0.55%
11 2025E ₹ 32,811.5 4.91% 11 2025E ₹ 56.3 8.55%
12 2026E ₹ 34,871.1 6.28% 12 2026E ₹ 60.2 6.95%
13 2027E ₹ 36,930.7 5.91% 13 2027E ₹ 64.1 6.50%
14 2028E ₹ 38,990.2 5.58% 14 2028E ₹ 68.1 6.10%
15 2029E ₹ 41,049.8 5.28% 15 2029E ₹ 72.0 5.75%

EBT Growth EPS Growth

₹ 50,000.0 ₹ 80.0
₹ 40,000.0 ₹ 60.0
₹ 30,000.0
₹ 40.0
₹ 20,000.0
₹ 10,000.0 ₹ 20.0

₹ 0.0 ₹ 0.0
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024A
2025A
2026A
2027A
2028A
2029A

2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024A
2025A
2026A
2027A
2028A
2029A
Infosys Ltd.
BSE: 500209 | NSE: INFY

BETA REGRESSION
Regression Beta - 1 Years Weekly

Infosys Weekly Return NIFTY Weekly Return Beta Drifting

Date Closing Price Return Date Closing Price Return Levered Raw Beta 0.93
03/04/2023 1377.35 03/04/2023 17599.15 Raw Beta Weight 75.00%
10/04/2023 1345.68 -2.30% 10/04/2023 17828.00 1.30%
17/04/2023 1188.90 -11.65% 17/04/2023 17624.05 -1.14% Market Beta 1.00
24/04/2023 1213.50 2.07% 24/04/2023 18065.00 2.50% Market Beta Weight 25.00%
01/05/2023 1219.65 0.51% 01/05/2023 18069.00 0.02%
08/05/2023 1206.19 -1.10% 08/05/2023 18314.80 1.36% Adjusted Beta 0.95
15/05/2023 1229.14 1.90% 15/05/2023 18203.40 -0.61%
22/05/2023 1276.17 3.83% 22/05/2023 18499.35 1.63%
29/05/2023 1258.30 -1.40% 29/05/2023 18534.10 0.19%
05/06/2023 1242.77 -1.23% 05/06/2023 18563.40 0.16%
12/06/2023 1268.00 2.03% 12/06/2023 18826.00 1.41%
19/06/2023 1241.84 -2.06% 19/06/2023 18665.50 -0.85%
26/06/2023 1311.05 5.57% 26/06/2023 19189.05 2.80%
03/07/2023 1305.84 -0.40% 03/07/2023 19331.80 0.74%
10/07/2023 1399.84 7.20% 10/07/2023 19564.50 1.20%
17/07/2023 1307.22 -6.62% 17/07/2023 19745.00 0.92%
24/07/2023 1315.95 0.67% 24/07/2023 19646.05 -0.50%
31/07/2023 1353.11 2.82% 31/07/2023 19517.00 -0.66%
07/08/2023 1346.73 -0.47% 07/08/2023 19428.30 -0.45%
14/08/2023 1363.37 1.24% 14/08/2023 19310.15 -0.61%
21/08/2023 1394.10 2.25% 21/08/2023 19265.80 -0.23%
28/08/2023 1417.41 1.67% 28/08/2023 19435.30 0.88%
04/09/2023 1442.69 1.78% 04/09/2023 19819.95 1.98%
11/09/2023 1483.92 2.86% 11/09/2023 20192.35 1.88%
18/09/2023 1468.75 -1.02% 18/09/2023 19674.25 -2.57%
25/09/2023 1409.17 -4.06% 25/09/2023 19638.30 -0.18%
02/10/2023 1451.62 3.01% 02/10/2023 19653.50 0.08%
09/10/2023 1404.94 -3.22% 09/10/2023 19751.05 0.50%
16/10/2023 1401.12 -0.27% 16/10/2023 19542.65 -1.06%
23/10/2023 1355.07 -3.29% 23/10/2023 19047.25 -2.53%
30/10/2023 1381.27 1.93% 30/10/2023 19230.60 0.96%
06/11/2023 1361.18 -1.45% 06/11/2023 19425.35 1.01%
13/11/2023 1429.49 5.02% 13/11/2023 19731.80 1.58%
20/11/2023 1429.34 -0.01% 20/11/2023 19794.70 0.32%
27/11/2023 1444.16 1.04% 27/11/2023 20267.90 2.39%
04/12/2023 1482.79 2.68% 04/12/2023 20969.40 3.46%
11/12/2023 1569.55 5.85% 11/12/2023 21456.65 2.32%
18/12/2023 1554.14 -0.98% 18/12/2023 21349.40 -0.50%
25/12/2023 1534.25 -1.28% 25/12/2023 21731.40 1.79%
01/01/2024 1523.96 -0.67% 01/01/2024 21710.80 -0.09%
08/01/2024 1603.71 5.23% 08/01/2024 21894.55 0.85%
15/01/2024 1649.90 2.88% 15/01/2024 21622.40 -1.24%
22/01/2024 1659.75 0.60% 22/01/2024 21352.60 -1.25%
29/01/2024 1683.86 1.45% 29/01/2024 21853.80 2.35%
05/02/2024 1659.99 -1.42% 05/02/2024 21782.50 -0.33%
12/02/2024 1692.11 1.93% 12/02/2024 22040.70 1.19%
19/02/2024 1667.45 -1.46% 19/02/2024 22212.70 0.78%
26/02/2024 1645.43 -1.32% 26/02/2024 22338.75 0.57%
04/03/2024 1607.39 -2.31% 04/03/2024 22493.55 0.69%
11/03/2024 1624.84 1.09% 11/03/2024 22023.35 -2.09%
18/03/2024 1500.39 -7.66% 18/03/2024 22096.75 0.33%
25/03/2024 1489.65 -0.72% 25/03/2024 22326.90 1.04%
Infosys Ltd.
BSE: 500209 | NSE: INFY

WACC
All figure are in INR unless started otherwise
Peer Comps
Debt/ Debt/ Levered Unlevered
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta 2 Beta 3

TCS India 8,021.00 1,549,644.97 30.00% 0.52% 0.51% 0.81 0.81

Infosys India 8,361.00 756,167.43 30.00% 1.11% 1.09% 0.93 0.93
HCL Technologies India 5,758.00 436,710.12 30.00% 1.32% 1.30% 0.76 0.75
Wipro India 16,464.90 262,648.27 30.00% 6.27% 5.90% 1.13 1.08
LTIMindtree India 2,070.60 163,183.05 30.00% 1.27% 1.25% 1.31 1.30

Average 30.00% 2.10% 2.01% 0.99 0.97

Median 30.00% 1.27% 1.25% 0.93 0.93

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 5.79% Risk Free Rate 6.97%

Tax Rate 30.00% Equity Risk Premium 8.64%
After Tax Cost of Debt 4.05% Levered Beta 4 0.94
Cost of Equity 15.08%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.93

Total Debt 8,361.00 1.09% 2.01% Target Debt/Equity 2.05%
Market Capitalization 756,167.43 98.91% 97.99% Tax Rate 30.00%
Total Capitalization 764528.43 100.00% 100.00% Levered Beta 0.94

Debt / Equity 1.11% 2.05%

Weighted Average Cost of Capital

1. Tax Rate Considered as Marginal Tax Rate for the country Cost of Equity 15.08%
2. Levered Beta is based on 5 year monthly data Equity Weight 97.99%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate)*Debt/Equity)
4. Levered Beta = Unlevered Beta/(1+(1-Tax Rate)*Debt/Equity) Cost of Debt 4.05%
Debt Weight 2.01%

WACC 14.86%
 Infosys Ltd.
BSE: 500209 | NSE: INFY

Intrinsic Growth
# Calculation of ROIC Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Current Assets
Trade receivables 18,487.0 19,294.0 22,698.0 25,424.0 30,193.0
Short term loans 239.0 159.0 248.0 289.0 248.0
Other asset items 20,890.0 22,712.0 29,771.0 37,719.0 38,255.0
Total Current Assets 39,616.0 42,165.0 52,717.0 63,432.0 68,696.0

Current Liabilities
Trade Payable 2,852.0 2,645.0 4,134.0 3,865.0 3,956.0
Advance From Customer - - - - -
Other liability items 18,471.0 22,759.0 31,385.0 36,637.0 35,244.0
Total Current Liabilities 21,323.0 25,404.0 35,519.0 40,502.0 39,200.0

Net Working Capital 18,293.0 16,761.0 17,198.0 22,930.0 29,496.0

Non Current Assets

Land 1,950.0 2,036.0 2,066.0 2,054.0 2,037.0
Building 15,104.0 16,328.0 16,760.0 16,903.0 16,515.0
Plant Machinery 3,185.0 3,296.0 3,210.0 3,302.0 3,428.0
Equipments 1,265.0 1,371.0 1,427.0 1,482.0 1,528.0
Computers 7,423.0 8,650.0 9,936.0 11,898.0 12,353.0
Furniture n fittings 2,073.0 2,149.0 2,278.0 2,303.0 2,326.0
Vehicles 69.0 74.0 71.0 60.0 62.0
Intangible Assets 5,527.0 6,372.0 6,495.0 7,594.0 7,652.0
Other fixed assets 2,289.0 2,730.0 2,766.0 3,281.0 3,294.0
Gross Block 38,885.0 43,006.0 45,009.0 48,877.0 49,195.0
Accumulated Depreciation 15,096.0 17,501.0 19,209.0 19,652.0 21,573.0
Net Non Current Assets 23,789.0 25,505.0 25,800.0 29,225.0 27,622.0

Invested Capital 42,082.0 42,266.0 42,998.0 52,155.0 57,118.0

EBIT 19,374.0 24,622.0 28,015.0 30,905.0 31,747.0
ROIC 46.04% 58.25% 65.15% 59.26% 55.58%

# Caluculation on Reinvestment Ratio Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Capex 3,307.0 2,107.0 2,161.0 2,579.0 2,201.0
Charges in Working Capital (1,532.0) 437.0 5,732.0 6,566.0
EBIT 19,374.0 24,622.0 28,015.0 30,905.0 31,747.0
Marginal Tax 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) 13,561.8 17,235.4 19,610.5 21,633.5 22,222.9
Reinvestment 575.0 2,598.0 8,311.0 8,767.0
Reinvestment Rate 3.34% 13.25% 38.42% 39.45%

4 Year Avg 23.61%

4 Year Median 25.83%

# Calculation of Growth Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Reinvestment 3.34% 13.25% 38.42% 39.45%

ROIC 58.25% 65.15% 59.26% 55.58%

Intrinsic Growth 1.94% 8.63% 22.76% 21.93%

4 Year Avg 13.82%

4 Year Median 15.28%
Infosys Ltd.
BSE: 500209 | NSE: INFY

DCF VALUATION
Calculation of PV of FCFF Mar-24A Mar-25F Mar-26F Mar-27F Feb-28F Feb-29F

EBIT 31,747.0 36,597.7 42,189.6 48,635.9 56,067.2 64,633.8

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-Tax) 22,222.9 25,618.4 29,532.7 34,045.1 39,247.0 45,243.7
Less: Reinvestment Rate 25.83% 25.83% 25.83% 25.83% 25.83% 25.83%
Free Cash Flow to firm (FCFF) 16,482.1 19,000.5 21,903.6 25,250.4 29,108.5 33,556.1
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.933 0.812 0.707 0.616 0.536
PV of FCFF 17,729.2 17,794.6 17,860.2 17,926.1 17,992.2

Expected Growth 15.28% Sensitivity Analysis

Terminal Growth 6.50% 337,531.2 13.00% 14.00% 14.86% 16.00%
WACC 14.86% 5.00% 372,033.7 329,343.7 299,616.4 267,448.7
6.00% 411,888.6 359,136.9 323,354.8 285,481.7
Calculation of Terminal Value 6.50% 436,414.7 377,012.9 337,353.7 295,921.9
7.00% 465,028.4 397,442.5 353,133.6 307,522.1
FCFF ( N+1) 38,683.2
WACC 14.86%
Terminal Growth Rate 6.50%
Terminal Value 462,955.3

Calculation of Equity Value

PV of FCFF 89,302.2
PV of Terminal Value 248,229.0
Enterprise Value 337,531.2
Add: Cash 14,786.0
Less: Debt -
Equity Value 352,317.2
No. of Shares 415.1
Equity Value per Share 848.8

Share Price 1797.4

Premium/Discount 2.12x
Infosys Ltd.
BSE: 500209 | NSE: INFY

COMPARABLE COMPANY VALUATION

Market Data Financials Valuation
Share Share Enterprice
Company Ticker Price Outstanding Equity Value Net Debt Value Revenue EBITDA Net Income EV/Sales EV/EBITDA P/E
TCS TCS ₹ 4,195.7 ₹ 361.8 ₹ 1,518,028.1 ₹ (5,265.0) ₹ 1,512,763.1 ₹ 244,125.0 ₹ 69,948.7 ₹ 47,084.0 6.2x 21.6x 32.2x
Infosys INFY ₹ 1,797.4 ₹ 415.2 ₹ 746,280.5 ₹ (6,425.0) ₹ 739,855.5 ₹ 155,053.0 ₹ 41,779.6 ₹ 26,677.0 4.8x 17.7x 28.0x
HCL Technologies HCLTECH ₹ 1,585.3 ₹ 271.4 ₹ 430,189.3 ₹ (14,392.0) ₹ 415,797.3 ₹ 111,674.0 ₹ 26,885.9 ₹ 16,438.0 3.7x 15.5x 26.2x
Wipro WIPRO ₹ 489.1 ₹ 523.1 ₹ 255,797.6 ₹ 6,769.6 ₹ 262,567.2 ₹ 88,893.1 ₹ 19,623.8 ₹ 11,262.7 3.0x 13.4x 22.7x
LTIMindtree LTIM ₹ 5,400.5 ₹ 29.6 ₹ 159,961.3 ₹ (745.4) ₹ 159,215.9 ₹ 35,957.5 ₹ 7,154.4 ₹ 4,567.4 4.4x 22.3x 35.0x
Tech Mahindra TECHM ₹ 1,512.5 ₹ 97.8 ₹ 147,907.4 ₹ (2,198.8) ₹ 145,708.6 ₹ 51,842.0 ₹ 5,609.0 ₹ 2,558.0 2.8x 26.0x 57.8x
Persistent Sys PERSISTENT ₹ 4,675.9 ₹ 15.4 ₹ 72,008.9 ₹ (571.8) ₹ 71,437.1 ₹ 10,237.6 ₹ 1,893.6 ₹ 1,171.1 7.0x 37.7x 61.5x
High 7.0x 37.7x 61.5x
75th Percentile 5.5x 24.1x 46.4x
Average 4.6x 22.0x 37.6x
Median 4.4x 21.6x 32.2x
25th Percentile 3.3x 16.6x 27.1x
Low 2.8x 13.4x 22.7x

Tata Motors Comparable Valuation EV/Sales EV/EBITDA P/E

Implied Enterprise Value ₹ 686,557.9 ₹ 903,557.0 ₹ 853,664.1
Net Debt ₹ (6,425.0) ₹ (6,425.0) ₹ (6,425.0)
Implied Equity Value ₹ 692,982.9 ₹ 909,982.0 ₹ 860,089.1
Share Outstanding ₹ 415.2 ₹ 415.2 ₹ 415.2
Implied Value Per Share ₹ 1,669.0 ₹ 2,191.7 ₹ 2,071.5

Overvalued Undervalued Undervalued