Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

Infosys capitalized on the strong demand for offshore IT services and has established long-standing relationships with its clients, leading to meaningful recurring revenue opportunities.
The company's solid (and healthy) profitability, coupled with limited reinvestment needs, drives strong free cash flow.
Increased traction for offshore outsourcing should act as a tailwind for Infosys over the medium term. Read more 

Bears Say

Infosys' insistence on premium pricing could temper its growth opportunities if customers balk or competition intensifies.
Infosys participates in the fragmented and extremely competitive IT services industry; pricing pressure is a concern, particularly in commodified sections of the business.
Foreign currency fluctuations can add volatility to Infosys' operating results. The company earns its revenue in multiple currencies while its cost base is primarily in Indian rupees. Read more 

Management

Overall, we believe that Infosys' stewardship of shareholder capital is standard. Infosys is led by CEO S.D. Shibulal and chairman N.R. Narayana Murthy. Shibulal cofounded the firm in 1981 with Murthy and executive vice chairman S. Gopalakrishnan, and   Read more 

Profile

Founded in 1981 and based in Bangalore, India, Infosys Technologies is a leading global provider of IT-related products and services. Its service portfolio includes consulting,  Read more 

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