Narrow-moat Infosys reported first-quarter earnings above consensus on both the top and bottom lines. Better yet, management offered an improved revenue outlook for 2025, citing wins from vendor consolidation that have helped offset overall spending conservatism.
Infosys should benefit from greater margin expansion than expected in our base case as more automated tech solutions decrease the variable costs associated with each incremental sale.
Infosys could suffer greater wage hikes than expected, leading to aggressive margin contraction if automation and mix shift benefits prove to be smaller in scale.
|
Metric
|
INFY
|
WIT
|
TCS
|
|---|---|---|---|
Price/Earnings (Normalized) | 1.41 | 23.25 | 34.62 |
Price/Book Value | 9.48 | 3.49 | 16.83 |
Price/Sales | 5.06 | 3.03 | 6.54 |
Price/Cash Flow | 25.05 | 18.44 | 31.50 |
|
Metric
|
INFY
|
WIT
|
TCS
|
|---|---|---|---|
Quick Ratio | 1.35 | 2.59 | 2.20 |
Current Ratio | 1.89 | 2.70 | 2.46 |
Interest Coverage | — | 11.16 | 74.34 |
|
Metric
|
INFY
|
WIT
|
TCS
|
|---|---|---|---|
Return on Assets (Normalized) | 19.91% | 9.27% | 31.39% |
Return on Equity (Normalized) | 33.00% | 14.94% | 50.38% |
Return on Invested Capital (Normalized) | 30.02% | 11.36% | 42.71% |
|
1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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