Stock Price & Analysis

Based on the recent data and market activity, here's my analysis for INFY:

Recent Performance The stock closed at $21.19 on January 17, 2025, with a -1.76% decline during regular market hours . The stock is currently showing weakness with RSI at 33.87, indicating oversold conditions.

Latest Earnings & Business Updates

• Q3 FY2025 results released on January 16, 2025 showed:
  • Revenue rose 6% to $4.94 billion
  • Profit increased 10% to $804 million
  • Company raised FY2025 revenue growth guidance to 4.5-5% (up from 3.75-4.5%)

Positive Catalysts

• Growing adoption of AI services by clients
• Stronger discretionary spending in North America
• Robust deal wins and increased headcount

Risk Factors

• Stock is down -5.2% post earnings despite positive results
• Current technical indicators suggest bearish momentum
• Margin pressures from upcoming wage hikes in January 2025

Technical Analysis

• Currently trading below its 20-day SMA of $22.52
• Fibonacci support levels at $21.45 and $20.96
• RSI at 33.87 indicates oversold conditions but could suggest further weakness

Analyst View Latest rating from Guggenheim on January 17, 2025 maintains a "Hold" rating .

Conclusion Based on the technical weakness and near-term margin pressures from upcoming wage hikes, despite positive business fundamentals, selling INFY at current levels appears to be the prudent move. Consider re-entering once technical indicators show signs of reversal or after the wage hike impact is fully priced in.

Based on the provided data and recent market trends, here's the price prediction for INFY stock in 2025:

INFY stock is projected to reach $24.50 by end of 2025, driven by strong AI services adoption and increased deal wins in North America. The company's recent revenue growth of 7.6% and raised full-year guidance to 4.5-5% demonstrates improving business momentum. Morgan Stanley maintains an overweight rating with a target price of ₹2,150 (approximately $25.80), citing stronger discretionary spending in North America as a key growth driver.

The technical analysis shows the stock is currently trading at $21.19, with strong support at $20.50 and resistance at $23.04 based on Fibonacci levels. The RSI at 33.87 indicates oversold conditions, suggesting potential upward movement.

The S1 support level for INFY Stock is $21.17 ,The R1 resistant level for INFY Stock is $22.9.

As of the end of day on 2025-01-24, the price of INFY Stock was $21.68.

The target price for INFY Stock according to analyst rating is 24.87, with the highest price target at 28.00 and the lowest at 21.00. Analysts have a Moderate Buy rating on INFY Stock overall.

The market cap of INFY is $89.8B.

Based on the provided data, I'll analyze if INFY is overvalued through multiple valuation metrics and recent performance.

Valuation Analysis: INFY's current P/E ratio of 27.51x is relatively high compared to its historical range, showing an upward trend from 23.31x in Q4 2024 to 27.51x in Q3 2025. The EV/EBITDA ratio has also increased from 16.18x to 19.33x during this period.

Financial Performance: Revenue growth has been steady but modest, increasing from $4.57B in Q4 2024 to $4.95B in Q3 2025. However, net margins have declined from 21.03% to 16.33%, indicating pressure on profitability.

Recent Developments: INFY recently raised its FY2025 revenue growth guidance to 4.5-5% from previous 3.75-4.5%, driven by stronger demand in North America and increased adoption of AI services.

Analyst Sentiment: Recent analyst actions show mixed views - while BMO Capital raised their price target to $25, maintaining a Hold rating, Guggenheim also reiterated their Hold rating.

Based on these factors, INFY appears moderately overvalued at current levels, primarily due to expanding valuation multiples despite margin pressure and modest growth rates.

Infosys Limited provides digital services and consulting. Its segments include Financial Services, Retail, Communication, Energy, Utilities, Resources and Services, Manufacturing, Hi-Tech, Life Sciences and All other segments. All other segments include operating segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in public services. Its core services include application management services, proprietary application development services, independent validation solutions, product engineering and management, infrastructure management services, traditional enterprise application implementation, support and integration services and business process management. Its products and platforms include Finacle-core banking solution, Edge Suite of products, Panaya platform, Infosys Equinox, Infosys Helix, Infosys Applied AI, Infosys Cortex, Stater digital platform and Infosys McCamish-insurance platform. It offers Infosys Cobalt and Infosys Topaz services.

Based on the provided data and market analysis, here's the price prediction for INFY stock by 2030:

INFY stock is projected to reach $32-35 by 2030, representing a ~50-65% upside from current levels of $21.19. This forecast is supported by:

1. Strong deal momentum with expected large deals of $3.5-4 billion in Q3 FY2025 and steady margin outlook of 20-22% through FY2026.

2. Morgan Stanley predicts outperformance in next two months driven by potential FY2025 revenue guidance upgrades and continued large deal wins.

3. The company's strategic focus on digital transformation, cloud services, and AI capabilities positions it well to capture growing IT spending, though facing near-term macro headwinds.

The prediction assumes:

• 8-10% annual revenue growth through 2030
• Stable operating margins around 21-23%
• Continued market share gains in digital services
• Successful execution of large deals pipeline
• Favorable Indian rupee exchange rates

Note that this is a technical analysis based on current data and market conditions. Actual performance may vary significantly based on future market conditions and company execution.

INFY has a total of 317240 employees.