Aniket Kangane BSE: 500209 | NSE: INFY

FINANCIAL
MODELING
REPORT
(DCF AND COMPARABLE COMPS VALUATION)
Infosys Ltd.
BSE: 500209 | NSE: INFY

HISTORICAL 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 ₹ 1,00,472.0 ₹ 1,21,641.0 ₹ 1,46,767.0 ₹ 1,53,670.0
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 ₹ 1,04,880.0 ₹ 1,10,030.0
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
EBITDA Margins 27.91% 27.35% 27.17% 26.69% 24.40% 24.53% 27.76% 25.89% 23.94% 23.70%

Interest ₹ 12.0 - - - - ₹ 170.0 ₹ 195.0 ₹ 200.0 ₹ 284.0 ₹ 470.0

Interest % Sales 0.02% - - - - 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%

EBT ₹ 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 35.45% 33.62% 33.12% 25.01% 31.01% 27.95% 29.50% 28.63% 30.09% 31.14%

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 Profit Margins 16.77% 16.61% 16.50% 18.03% 15.15% 15.24% 17.14% 16.32% 14.59% 14.02%

No. Of Equity Shares ₹ 459.4 ₹ 459.4 ₹ 459.4 ₹ 436.8 ₹ 436.9 ₹ 425.9 ₹ 426.1 ₹ 420.7 ₹ 414.9 ₹ 415.1

Earnings 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% 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 - - - - - ₹ 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 ₹ 1,07,511.0 ₹ 1,16,729.0 ₹ 1,24,596.0 ₹ 1,36,020.0

Fixed Asset 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
Investments ₹ 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 ₹ 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
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 Asset ₹ 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 ₹ 1,07,511.0 ₹ 1,16,729.0 ₹ 1,24,596.0 ₹ 1,36,020.0

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
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
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 Activity ₹ 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
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 Activity - ₹ 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)
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 Activity - (₹ 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 ₹ 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) ₹ 2,613.0
Infosys Ltd.
BSE: 500209 | NSE: INFY

COMMON SIZE STATEMENT

Income Statement
Particulars 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%
EBITDA 34.34% 32.35% 31.62% 31.38% 27.88% 27.56% 29.88% 27.75% 25.77% 26.76%
-
Balance Sheet
Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilities 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 - 81.51% 106.19% 168.96% 97.42% 82.61% 154.37% 114.87% 109.68% 135.35% 116.77% 109.68%
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
(In days)
Debtor Days 66 66 66 68 65 74 70 68 63 72 68 67
Creditor Days 106 78 76 75 84 87 94 108 102 94 90 91
Cash Conversion Cycle -40 -12 -10 -7 -19 -13 -24 -40 -38 -22 -22 -21
CFO/Sales 14.09% 12.03% 10.97% 10.65% 9.08% 8.27% 7.48% 6.17% 5.12% 4.89% 8.87% 8.68%
CFO/Total Assets 11.33% 10.00% 9.03% 9.47% 8.93% 8.18% 6.99% 6.43% 6.03% 5.52% 8.19% 8.56%
CFO/Total Debt 0.00% 0.00% 0.00% 0.00% 0.00% 162.12% 141.05% 137.21% 90.50% 89.86% 62.07% 44.93%
Infosys Ltd.
BSE: 500209 | NSE: INFY

FORCASTING
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth
1 2015A 53,319.0 1 2015A 14,883.0
2 2016A 62,441.0 17.11% 2 2016A 17,079.0 14.76%
3 2017A 68,484.0 9.68% 3 2017A 18,604.0 8.93%
4 2018A 70,522.0 2.98% 4 2018A 18,822.0 1.17%
5 2019A 82,675.0 17.23% 5 2019A 20,170.0 7.16%
6 2020A 90,791.0 9.82% 6 2020A 22,267.0 10.40%
7 2021A 1,00,472.0 10.66% 7 2021A 27,889.0 25.25%
8 2022A 1,21,641.0 21.07% 8 2022A 31,491.0 12.92%
9 2023A 1,46,767.0 20.66% 9 2023A 35,130.0 11.56%
10 2024A 1,53,670.0 4.70% 10 2024A 36,425.0 3.69%
11 2025E 1,56,984.6 2.16% 11 2025E 38,074.9 4.53%
12 2026E 1,68,240.3 7.17% 12 2026E 40,583.8 6.59%
13 2027E 1,79,496.0 6.69% 13 2027E 43,092.7 6.18%
14 2028E 1,90,751.7 6.27% 14 2028E 45,601.6 5.82%
15 2029E 2,02,007.4 5.90% 15 2029E 48,110.5 5.50%

Sales Growth EBITDA Growth

2,50,000.0 60,000.0
2,00,000.0 50,000.0
1,50,000.0 40,000.0
30,000.0
1,00,000.0
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

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

-20.0
Infosys Ltd.
BSE: 500209 | NSE: INFY

BETA REGRESSION
Regression Beta - 2 Years Weekly

Infosys Weekly Returns Nifty Returns Beta Drifiting

Date Closing Price Returns Closing Price Returns Levered Raw Beta 1.04
02-05-2022 1471.1 16411.3 Raw Beta Weight 75.00%
09-05-2022 1434.4 -2.49% 15782.2 -3.83% Market Beta 1
16-05-2022 1387.5 -3.27% 16266.2 3.07% Market Beta Weight 25.00%
23-05-2022 1393.4 0.43% 16352.5 0.53%
30-05-2022 1450.9 4.13% 16584.3 1.42% Adjusted Beta 1.03
06-06-2022 1423.0 -1.92% 16201.8 -2.31%
13-06-2022 1336.8 -6.06% 15293.5 -5.61%
20-06-2022 1388.6 3.88% 15699.3 2.65%
27-06-2022 1425.5 2.66% 15752.0 0.34%
04-07-2022 1459.3 2.37% 16220.6 2.97%
11-07-2022 1378.3 -5.55% 16049.2 -1.06%
18-07-2022 1451.5 5.31% 16719.4 4.18%
25-07-2022 1493.3 2.88% 17158.3 2.62%
01-08-2022 1557.8 4.32% 17397.5 1.39%
08-08-2022 1536.1 -1.39% 17698.2 1.73%
15-08-2022 1539.0 0.19% 17758.4 0.34%
22-08-2022 1466.2 -4.73% 17558.9 -1.12%
29-08-2022 1400.1 -4.51% 17539.4 -0.11%
05-09-2022 1456.6 4.04% 17833.3 1.68%
12-09-2022 1326.9 -8.90% 17530.8 -1.70%
19-09-2022 1315.7 -0.84% 17327.3 -1.16%
26-09-2022 1362.0 3.52% 17094.3 -1.34%
03-10-2022 1398.4 2.67% 17314.7 1.29%
10-10-2022 1420.6 1.59% 17185.7 -0.74%
17-10-2022 1445.9 1.78% 17576.3 2.27%
24-10-2022 1458.2 0.85% 17786.8 1.20%
31-10-2022 1474.8 1.14% 18117.2 1.86%
07-11-2022 1529.5 3.71% 18349.7 1.28%
14-11-2022 1552.2 1.48% 18307.7 -0.23%
21-11-2022 1593.3 2.65% 18512.8 1.12%
28-11-2022 1595.5 0.14% 18696.1 0.99%
05-12-2022 1528.7 -4.19% 18496.6 -1.07%
12-12-2022 1482.8 -3.00% 18269.0 -1.23%
19-12-2022 1458.4 -1.65% 17806.8 -2.53%
26-12-2022 1469.2 0.74% 18105.3 1.68%
02-01-2023 1411.0 -3.96% 17859.4 -1.36%
09-01-2023 1464.7 3.81% 17956.6 0.54%
16-01-2023 1486.1 1.46% 18027.7 0.40%
23-01-2023 1479.8 -0.42% 17604.3 -2.35%
30-01-2023 1558.0 5.28% 17854.1 1.42%
06-02-2023 1566.9 0.57% 17856.5 0.01%
Infosys Ltd.
BSE: 500209 | NSE: INFY

WACC
All figures are in INR unless stated otherwise.

Peer Comps
Debt/ Debt/ Levered Unlevered
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta 2 Beta 3

TCS India 8021 13,90,575.76 30.00% 0.58% 0.57% 0.90 0.90

Infosys India 8359 5,87,887.36 30.00% 1.42% 1.40% 1.03 1.02
HCL Technologies India 5756 3,65,815.62 30.00% 1.57% 1.55% 0.80 0.79
Wipro India 16464.9 2,39,065.55 30.00% 6.89% 6.44% 1.29 1.23
LTIMindtree India 2070.6 1,37,773.72 30.00% 1.50% 1.48% 1.39 1.38

Average 30.00% 2.39% 2.29% 1.08 1.06

Median 30.00% 1.50% 1.48% 1.03 1.02

Cost of Debt Cost of Equity

Pre-tax Cost of Debt 7.30% Risk Free Rate 7.39%

Tax Rate 30.00% Equity Risk Premium 9.42%
After Tax Cost of Debt 5.11% Levered Beta 4 1.04
Cost of Equity 17.15%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 1.02

Total Debt 8021 0.57% 2.29% Target Debt/ Equity 2.34%
Market Capitalization 13,90,575.76 99.43% 97.71% Tax Rate 30.00%
Total Capitalization 13,98,596.76 100.00% 100.00% Levered Beta 1.04

Debt / Equity 0.58% 2.34% Weighted Average Cost of Capital

1. Tax Rate considered as Marginal Tax Rate for the country Cost of Equity 17.15%
2. Levered Beta is based on 5 year monthly data Equity Weight 97.71%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity)
3. Levered Beta = Unlevered Beta/(1+(1-Tax Rate) x Debt/Equity) Cost of Debt 5.11%
Debt Weight 2.29%

WACC 16.88%
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 Payables 2,852.0 2,645.0 4,134.0 3,865.0 3,956.0
Advance from Customers - - - - -
Other liability items 18,471.0 22,759.0 31,385.0 36,637.0 35,244.0
Total Current Assets 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 15096 17501 19209 19652 21573
Net Non Current Assets 23789 25505 25800 29225 27622
Capital Invested 42,082.0 42,266.0 42,998.0 52,155.0 57,118.0
EBIT 21,962.00 26,556.00 30,074.00 33,309.00 35,973.00
ROIC 52.19% 62.83% 69.94% 63.87% 62.98%

Calculation of Reinvestment Ratio Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Capex -3,307 -2,107 -2,161 -2,579 -2,201
Changes in working Capital -1,532.0 437.0 5,732.0 6,566.0
EBIT 21962 26556 30074 33309 35973
Marginal Tax 30% 30% 30% 30% 30%
EBIT (1-T) 15373.4 18589.2 21051.8 23316.3 25181.1
Reinvestment -3,639 -1,724 3,153 4,365
Reinvestment Rate -19.58% -8.19% 13.52% 17.33%

4 Year Avg 0.77%

4 Year Median 2.67%

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

Reinvestment Rate -19.58% -8.19% 13.52% 17.33%

ROIC 62.83% 69.94% 63.87% 62.98%

Intrinsic Growth -12.30% -5.73% 8.64% 10.92%

4 Year Avg 0.38%

4 Year Median 1.45%
Infosys Ltd.
BSE: 500209 | NSE: INFY

DCF VALUATION
Calculation of PV of FCFF Mar-24A Apr-25F Apr-26F Apr-27F Apr-28F Apr-29F
EBIT 35973.0 36496.1 37026.9 37565.3 38111.6 38665.9
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT (1-T) 25181.1 25547.3 25918.8 26295.7 26678.1 27066.1
Less: Reinvestment Rate 2.67% 2.67% 2.67% 2.67% 2.67% 2.67%
Free Cash Flow to Firm 24509.6 24866.0 25227.6 25594.5 25966.7 26344.3
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.925 0.791 0.677 0.579 0.496
PV of FCFF 23000.8 19965.7 17331.1 15044.2 13059.0

Expected Growth 1.45%

Terminal Growth 6.80% Sensitivity Analysis
WACC 16.88% 2,65,237.15 13% 14.02% 15% 16%
5% -334093.2 -296313.3 -267274.6 -242976.9
Calculation of Terminal Value 6% -381820.8 -333260.1 -296971.8 -267274.6
7% -445457.6 -380733.0 -334093.2 -296971.8
FCFF (N+1) 26727.5 8% -534549.2 -443977.7 -381820.8 -334093.2
WACC 16.88%
Terminal Growth 7%
Terminal Value 2,65,237.15

Calculation of Equity Value

PV of FCC 88400.7
PV of Terminal Value 131479.1
Enterprise Value 131479.1
Add: Cash 14786.0
Less: Debt 8359.0
Equity Value 137906.1
No of Shares 415.1
Equity Value per Share 332.2
Share Price 1416.0
Premium/Discount 4.26x
Infosys Ltd.
BSE: 500209 | NSE: INFY
Amount in Crores

COMPARABLE COMPANY VALUATION

Market Data Financials Valuation

Share Share Enterprise

Company Ticker Price Outstanding Equity Value Net Debt Value Revenue EBITDA Net Income EV/Sales EV/EBITDA P/E
Infosys INFY 1,416.3 415.1 5,87,892.0 (10,108.0) 5,77,784.0 1,53,670.0 44,532.0 26,248.0 3.8x 13.0x 22.4x
TCS TCS 3,843.4 361.8 13,90,580.6 (8,301.0) 13,82,279.6 2,40,893.0 71,736.0 46,099.0 5.7x 19.3x 30.2x
HCL Technologies HCLTECH 1,348.1 271.4 3,65,820.3 (15,977.0) 3,49,843.3 1,09,913.0 27,276.0 15,710.0 3.2x 12.8x 23.3x
Wipro WIPRO 457.4 522.7 2,39,066.0 (6,288.2) 2,32,777.8 89,760.3 32,441.1 11,112.1 2.6x 7.2x 21.5x
LTIMindtree LTIM 4,652.0 29.6 1,37,790.8 (1,997.1) 1,35,793.7 35,517.0 8,341.0 4,584.6 3.8x 16.3x 30.1x
Tech Mahindra TECHM 1,250.5 97.7 1,22,144.0 (2,918.4) 1,19,225.6 51,995.5 6,153.3 2,396.8 2.3x 19.4x 51.0x
Persistent Sys PERSISTENT 3,366.9 15.4 51,849.5 (713.5) 51,136.0 9,821.6 1,945.5 1,093.5 5.2x 26.3x 47.4x
L&T Technology LTTS 4,574.0 10.6 48,392.9 (932.2) 47,460.7 8,678.9 2,414.1 1,258.5 5.5x 19.7x 38.5x
Mphasis MPHASIS 2,291.9 18.9 43,316.9 (403.9) 42,913.0 13,278.5 4,617.8 1,554.8 3.2x 9.3x 27.9x
High 5.7x 26.3x 51.0x
75th Percentile 5.2x 19.4x 38.5x
Average 3.9x 15.9x 32.5x
Median 3.8x 16.3x 30.1x
25th Percentile 3.2x 12.8x 23.3x
Low 2.3x 7.2x 21.5x

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

Implied Enterprise Value 5,77,784.0 7,24,992.6 7,78,779.1
Net Debt (10,108.0) (10,108.0) (10,108.0)
Implied Equity Value 5,87,892.0 7,35,100.6 7,88,887.1
Share Outstanding 415.1 415.1 415.1
Implied Value Per Share 1416.3 1770.9 1900.5