Fundamental-Analysis-of-Infosys-Tech-Ltd

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Welcome: 

Welcome

Slide 2: 

Fundamental Analysis of Infosys Tech Ltd. Presented by Dillip Khuntia

Economic Analysis: 

The Political Equation. Global Financial Crisis & Indian Economy. Economic Growth. Government Policy. Budget. Tax Policy. Interest Rate. Infrastructure. Inflation. Foreign Exchange. Economic Analysis

Industry Analysis: 

Past Performance. Competitive Structure. Permanence. Growth. Industry Analysis

Company Analysis: 

Company Profile. The Management. Analysis of Annual Report. Projected Profit & Loss Account. Company Analysis

Projected Profit & Loss Account as on 31st March 2010.: 

Projected Profit & Loss Account as on 31 st March 2010. Particulars 2007 2008 2009 2010E Income 13522 16331 20776 26372.82 Expenditure 9393 11231 14052 17864.04 PBT 4129 5100 6714 8526.78 Tax 346 630 895 1108.48 PAT 3783 4470 5819 7418.29 Balance bf 2190 4844 6641 10305 Amount Available for Appropriation 5973 9314 12460 17723.29 EPS 67.82 78.24 101.65 129.69

Justification: 

Here a projection of 27% growth in income is made, the reasons are Economic Trend is encouraging. Revival from Recession. The Market condition is also good. Justification

Slide 8: 

Infosys exports most of its products. Since banking, telecom industry are growing, IT industry may get some profit out of it. Government is going for e-governance and SWAN, which is beneficial for the IT sector. Revival of USA.

Justification: 

Justification A 27% increase in the total expenditure may occur due to following reasons, High inflation. Labour cost will be more. Since the company is reviving from recession, it may go for more diversified investment, which will increase the expenditure. Instability in the foreign market.

Intrinsic Value : 

Intrinsic Value = Projected P/E Ratio × Projected EPS = 17 × 129.69 =2204.73 The current market price of Infosys share is 2732.35 Intrinsic Value

Conclusion: 

It is clear from the analysis that the shares of Infosys is overvalued. But since there is a positive growth trend, it can be suggested to hold the shares of Infosys. Conclusion

Slide 12: 

Thank you