Welcome to yet another blog by myowow. Today we will analyse Infosys stock. The Indian IT company, Infosys, has announced that they will be acquiring the American IT company Panaya. The acquisition is being done to improve the company’s digital platform and align it with its new digital strategy. While this move might seem good on paper, many investors are worried as the shares have fallen by 4% before the announcement. Read on to find out whether or not you should join them in selling their shares.
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Introduction
Infosys is an Indian multinational corporation that provides business consulting, information technology, and outsourcing services. It is headquartered in Bengaluru, India. As of March 2019, Infosys is the second-largest Indian IT company by revenue.
The question of whether or not to buy or sell Infosys stock is complex. There are many factors to consider, including the company’s financial stability, growth potential, and competitive landscape.
Our customizable company profile tells all, so you can make an informed decision about whether or not to invest in Infosys stock.
Company Overview
Infosys is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. It has its headquarters in Bengaluru, India.
The company was founded in 1981 by seven engineers, who were all former employees of Indian Institute of Technology. They started Infosys with an initial investment of US$250. The company was registered as a private limited company in India in June 1981.
Infosys went public in 1993 and was listed on the National Stock Exchange of India and the Bombay Stock Exchange. In 1999, Infosys became the first Indian company to be listed on the Nasdaq stock exchange.
Today, Infosys is a global leader in providing IT services and solutions. It has over 200,000 employees across the world, serving clients in over 50 countries.
Financials
Infosys is one of the leading global providers of consulting, technology, and outsourcing services. The company has a market capitalization of over $45 billion and employs over 200,000 people worldwide.
Infosys was founded in 1981 by seven entrepreneurs who had a vision to transform India into a global leader in technology services. Today, the company is a publicly traded company listed on the Bombay Stock Exchange and the National Stock Exchange of India.
The company’s growth has been nothing short of phenomenal. In the last fiscal year, Infosys reported revenue of $10.8 billion, up 12% from the previous year. Net income was $2.6 billion, up 19% from the previous year.
So should you buy or sell Infosys stock? Let’s take a closer look at the company’s financials to get a better idea.
Infosys has a strong balance sheet with cash and equivalents of $4.4 billion and no debt. This gives the company plenty of financial flexibility to invest in growth opportunities or return cash to shareholders through dividends or share repurchases.
In terms of valuation, Infosys is currently trading at around 20
Management
The current management team at Infosys is led by CEO Salil Parekh, who took over the helm in January 2018. Prior to joining Infosys, Parekh was a member of the executive committee at Capgemini. He has also worked at Boston Consulting Group and Ernst & Young.
The Infosys board of directors is chaired by Nandan Nilekani, one of the co-founders of the company. Other members of the board include Ravi Venkatesan (vice chairman), Punita Kumar Sinha, Kiran Mazumdar-Shaw, and Dinesh Paliwal.
Infosys has been going through some turbulence in recent years, including the high-profile resignation of its previous CEO Vishal Sikka in August 2017. Sikka’s departure followed a public feud with Infosys founder and then-chairman Narayana Murthy.
Competitors
As one of the largest information technology firms in India, Infosys competes with the who’s who of the IT world, including Tata Consultancy Services, Wipro, and IBM. All three of these companies are much larger than Infosys, with Tata and Wipro both having over twice the revenue.
That said, Infosys has been growing at a faster pace than its larger rivals. In the most recent fiscal year, Infosys posted revenue growth of 7.4%, while Tata and Wipro grew at 5.5% and 3.5%, respectively. Infosys has also been doing a better job of winning large contracts. In the last fiscal year, the company won 31% of its contracts that were worth $1 million or more, compared to just 18% for TCS and 10% for Wipro.
The bottom line is that Infosys is a very strong competitor in the IT services market, despite being smaller than its rivals. The company is growing quickly and is winning more of the large contracts that are key to success in this industry. For these reasons, we believe Infosys is a stock worth considering for investment.
SWOT Analysis
Infosys Limited is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. It is headquartered in Bengaluru, India.
The company was founded in 1981 by seven engineers with $250. The company went public in 1993.
Infosys employs over 200,000 people across the globe.
The company has a market capitalization of over $50 billion as of April 2019.
The stock price of Infosys has been on a roller coaster ride in the last few years. After reaching a high of over ₹3,000 in early 2018, the stock price plunged to a low of under ₹2,000 in October 2018. The stock has since recovered to its current price of around ₹2,700.
Should you buy or sell Infosys shares? That’s a difficult question to answer given the current state of the markets. However, our customizable company profile can help you make an informed decision about whether Infosys is a good investment for you.
Conclusion:
Infosys stock is a good buy for investors who are looking for long-term growth potential. The company has a strong track record of delivering shareholder value and is well-positioned to continue growing in the future. While there are some risks to consider, such as the potential for currency headwinds, we believe Infosys is a good bet for investors seeking exposure to the Indian economy.
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