Page 5 - Value Plus

fundamental Company Overview
stock
Infosys Limited (Infosys), formerly Infosys
INFOSYS LTD. Target Price Rs 1,225 Technologies Limited, provides business
consulting, technology, engineering and
Hold 500209 outsourcing services. Its end-to-end business
INFY solutions include consulting and systems
Value Parameters integration comprising consulting, enterprise
BSE Code Rs 1175 solutions, systems integration and advanced
NSE Symbol Rs 5 technologies; business information technology
CMP (IT) services consisting application development
Face Value 1219/933 and maintenance, independent validation
52 Week High/Low 2,59,256 services, infrastructure management,
Market Cap (Rs cr) 54 engineering services comprising product
EPS (Rs) (FY16) 21 engineering and life cycle solutions and
PE ratio (x) business process management; products,
business platforms and solutions, including
Shareholding Pattern % (Dec’ 15) Finacle, its banking product, which offers
solutions to address core banking, mobile
banking and e-banking needs of retail, corporate
and universal banks globally, and areas, such
as cloud computing, enterprise mobility and
sustainability.

Investment Rationale

Infosys has been able to navigate better than
earlier expectations and company continues
to focus on enhancing operational efficiency
through multiple levers in the coming quarters.
Also company is trying to bring the best of
human potential for software platform to
drive the digital transformation. In Q3 FY 16,
Infosys strengthened relationships with key
clients, including renewing existing large scale
contracts, opening new accounts and signing
four large deals. Also company completed
acquisition of Noah Consulting, LLC, a leading
provider of advanced information management
consulting services for the oil and gas industry;
& Invested in WHOOP, an early stage company
that offers a performance optimization system
for elite professional sports teams, and invested
in CloudEndure, a start-up that provides Cloud
Migration and Cloud based Disaster Recovery
(DR) software.

Valuations

We have assigned a PE of 17x to its FY17E
earnings and have arrived at fair value of Rs
1,225 per share. We have HOLD rating on the
stock.

5 ARIHANT CAPITAL ¡ FEBRUARY 2016