Welcome

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.
Industry Analysis
Past Performance.

Competitive Structure.

Permanence.

Growth.
Company Analysis
Company Profile.

The Management.

Analysis of Annual Report.

Projected Profit & Loss Account.

 Projected Profit & Loss Account as on
31st 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 5973 9314 12460 17723.29

Appropriation

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.

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
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
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.
THANK YOU