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Infosys Limited (INFY): Comprehensive Stock Analysis Report | Scrolls

by KarNivesh | 06 August, 2025

Infosys Limited: A Simplified Stock Analysis Summary (2025)

Infosys Limited is one of India’s biggest and most respected IT companies, known for providing digital services, consulting, and software solutions to clients around the globe. Headquartered in Bangalore, Infosys has been in business since 1981 and now operates in countries across North America, Europe, Asia-Pacific, and more.

As of August 2025, Infosys is valued at around ₹5.97 lakh crores (₹5.97 trillion), making it the second-largest IT firm in India after TCS (Tata Consultancy Services). Recent Developments

While many companies in the IT sector are cutting jobs, Infosys is doing the opposite it plans to hire 20,000 fresh graduates in 2025. This move shows the company’s confidence in future growth, especially with its increasing focus on artificial intelligence (AI). It has already trained over 275,000 employees in AI, which is helping improve productivity by 5–15% in software development and other services. How Infosys Makes Money

Infosys earns its income by offering services like:

  1. Software development and maintenance

  2. Cloud computing and data analytics

  3. Business process outsourcing (BPO)

  4. Digital transformation (helping companies go digital)

  5. Consulting and IT infrastructure support

Its strong business model includes both local (onshore) and remote (offshore) services, which keeps costs low and profits high. Financial Performance (2025)

  • Revenue: ₹1.62 lakh crores ($19.28 billion), up 3.9% from last year

  • Profit: ₹26,750 crores ($3.16 billion)

  • Earnings per Share (EPS): ₹64.32

  • Operating Margin: 24% (i.e., good control on expenses)

  • Net Margin: 16.4% (healthy profit after all costs)

Infosys is highly profitable with:

Return on Equity (ROE): 28.72% (how well it uses investor money)

Return on Capital Employed (ROCE): 37.5% (efficient use of business resources)

Its debt level is extremely low (debt-to-equity ratio: 0.09), which means it runs mostly on its own funds, not borrowed money  a very good sign. Stock Performance

While the stock has fallen recently (down 16% in a year), it has given over 54% return in 5 years, proving itself as a good long-term investment. Experts suggest that the current stock price might be a good entry point for long-term investors, as it's closer to its recent low of ₹1,307.

Comparison of Infosys with major IT peers across key financial metrics including valuation and growth
Comparison of Infosys with major IT peers across key financial metrics including valuation and growth

Growth Potential

Infosys is focusing heavily on AI, cloud services, and expanding into new sectors like healthcare and telecom. It has its own software platforms (like Finacle for banking and NIA for AI), which help it stay ahead of smaller players. Its recent $3.8 billion in new contracts suggests healthy business ahead. Infosys is a financially sound, future-ready company with strong leadership in AI and digital services. While near-term growth may be slow, its long-term prospects remain attractive for investors. With its solid balance sheet, strategic hiring, and digital focus, Infosys continues to be one of India’s top IT companies.

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