Morningstar Rating

Stock Research and Analysis

by Andrew Lange

Bulls Say

Infosys has many long-standing client relationships, a well-managed global delivery model, and a comprehensive services portfolio.
New CEO Sikka could inspire a new direction for the company and improve the firm’s competitive position and operational performance.
Continental Europe’s increasing enthusiasm for offshore outsourcing could act as a growth opportunity and Infosys’ acquisition of consultancy Lodestone could cement a good foothold in the region. Read more 

Bears Say

Top-line growth and attrition are concerns the company needs to address. While measures have been taken to improve these metrics, more improvement is needed in order to enthuse the investment community.
A number of high-profile client-facing executive departures could negatively affect the firm’s standing with legacy clients.
Commoditization of outsourcing services could significantly pressure revenue and margins (roughly 25% of the firm’s revenue is exposed to a high degree of commoditization). Read more 

Management

We think Infosys’ equity stewardship is standard. Co-founder and executive chairman, N.R. Narayana Murthy, came out of retirement in 2013 to help right the Infosys ship. His return resulted in an improved financial performance, although it has been   Read more 

Profile

Infosys is a global provider of consulting and IT services. The company was founded in 1981, employs more than 160,000 staff, and serves clients in over 30 countries. Infosys   Read more 

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