1QFY2018 Result Update | IT
July 17, 2017
Infosys
BUY
CMP
`972
Performance highlights
Target Price
`1,179
(` cr)
1QFY18
4QFY18
% chg (qoq)
1QFY17
% chg (yoy)
Investment Period
12 Months
Net revenue
17,078
17,120
(0.2)
16,782
1.8
EBITDA
4,561
4,658
(2.1)
4,416
3.3
EBITDA margin (%)
26.7
27.2
(50)bps
26.3
39bps
Stock Info
Adj. PAT
3,534
3,603
(1.9)
3,436
2.9
Sector
IT
Source: Company, Angel Research
Market Cap (` cr)
2,23,275
Net Debt (` cr)
-32,666
Infosys posted better than expected results for 1QFY2018, mainly driven by
Beta
0.7
better than expected volume growth during the quarter. On sales front, the
52 Week High / Low
1,278/900
company posted a 3.2% sequential growth in USD revenues to US$2,651mn v/s.
Avg. Daily Volume
1,39,748
US$2,657mn expected, mostly volume lead. In constant currency (CC) terms, the
Face Value (`)
5
company posted a 2.6% qoq growth. EBIT margin came in at 24.1% v/s. 23.6%
BSE Sensex
32,021
expected, a qoq dip of 50bps. Consequently, Adj. PAT came in at `3,534cr v/s.
Nifty
9,886
`3,443cr expected, de-growth of 1.9% qoq. For FY2018, the company has kept
Reuters Code
INFY.BO
the guidance of 6.5-8.5% CC growth and EBIT margin guidance of 23-25%. We
Bloomberg Code
[email protected]
maintain our Buy rating on the stock with a target price of `1,179.
Quarterly highlights: On sales front, the company posted a 3.2% sequential
growth in USD revenues to US$2,651mn v/s. US$2,657mn expected, mostly
Shareholding Pattern (%)
volume lead. In constant currency (CC) terms, the company posted a 2.6% qoq
Promoters
12.8
growth. In terms of geography, in CC terms, USA, Europe, India and ROW
MF / Banks / Indian Fls
20.9
posted a qoq growth of 1.3%, 3.1%, 11.2% and 6.9% respectively. EBIT margin
FII / NRIs / OCBs
55.5
came in at 24.1% v/s. 23.6% expected, a qoq dip of 50bps. Impact of wage
Indian Public / Others
10.8
hikes and visa expenses, apart from rupee appreciation were the major drag on
profitability. However, the fall was lower than expected on the back of better than
Abs.(%)
3m 1yr
3yr
expected volume growth. Consequently, PAT came in at `3,534cr v/s. `3,443cr
Sensex
8.9
14.6
28.0
expected, de-growth of 1.9% qoq. Adj. PAT posted a qoq dip of 1.9%. During the
Infosys
5.1
(17.3)
20.5
quarter, it had written down the entire carrying value of the investment in its
associate DWA Nova LLC, an Infosys Innovation Fund Investment (`71cr).
Outlook and valuation: For FY2018, Infosys has reiterated the revenue growth
3-year price chart
guidance in the range of 6.5-8.5% in CC terms, while EBIT is expected to be
around 23-25%. We maintain our BUY rating on the stock.
Key financials (Consolidated, IFRS)
Y/E March (` cr)
FY2016
FY2017
FY2018E
FY2019E
Net sales
62,441
68,484
73,963
80,619
% chg
17.1
9.7
8.0
9.0
Adj. net profit
13,491
14,353
14,785
15,916
% chg
9.4
6.4
3.0
7.7
EBITDA margin (%)
27.4
27.2
26.0
26.0
EPS (`)
59.0
62.5
64.4
69.3
Source: Company, Angel Research
P/E (x)
16.5
15.5
15.1
14.0
P/BV (x)
3.6
3.2
3.0
2.7
RoE (%)
21.8
20.8
19.7
19.6
Sarabjit kour Nangra
RoCE (%)
20.7
20.3
20.1
20.4
+91 22-39357800 Ext: 6806
EV/Sales (x)
3.0
2.8
2.4
2.2
[email protected]
EV/EBITDA (x)
11.1
10.2
9.4
8.4
Source: Company, Angel Research; Note: CMP as of July 14, 2017
Please refer to important disclosures at the end of this report
1
Infosys | 1QFY2018 Result Update
Exhibit 1: 1QFY2018 performance (IFRS, consolidated)
(` cr)
1QFY18
4QFY17
% chg (qoq)
1QFY17
% chg (yoy)
FY17
FY16
% chg (yoy)
Net revenue
17,078
17,120
(0.2)
16,782
1.8
68,484
62,441
9.7
Cost of revenue
10,450
10,324
1.2
10,312
1.3
41,550
37,689
10.2
Gross profit
6,628
6,796
(2.5)
6,470
2.4
26,934
24,752
8.8
SG&A expenses
2,067
2,138
(3.3)
2,054
0.6
8,330
7,723
7.9
EBITDA
4,561
4,658
(2.1)
4,416
3.3
18,604
17,029
9.2
Depreciation
450
446
0.9
369
22.0
1,703
1,409
20.9
EBIT
4,111
4,212
(2.4)
4,047
1.6
16,901
15,620
8.2
Other income
814
746
9.1
753
8.1
3,080
3,122
(1.3)
PBT
4,925
4,958
(0.7)
4,800
2.6
19,981
18,742
6.6
Income tax
1,371
1,330
3.1
1,362
0.7
5,598
5,251
6.6
Exceptional item
71
25
2
30
3
Reported PAT
3,483
3,603
(3.3)
3,436
1.4
14,353
13,494
6.4
Adjusted PAT
3,534
3,603
(1.9)
3,436
2.9
14,353
13,491
6.4
EPS
15.5
15.8
(1.9)
15.2
1.8
62.8
59.0
6.4
Gross margin (%)
38.8
39.7
(89)bp
38.6
26bps
39.3
39.6
(31)bp
EBITDA margin (%)
26.7
27.2
(50)bp
26.3
39bps
27.2
27.3
(11)bp
EBIT margin (%)
24.1
24.6
(50)bp
24.1
(2)bps
24.7
25.0
(34)bp
PAT margin (%)
20.7
21.0
(35)bp
20.5
22bp
21.0
21.6
(65)bp
Source: Company, Angel Research
Exhibit 2: 1QFY2018 - Actual Vs Angel estimates
(` cr)
Actual
Estimate
% Var.
Net revenue
17,078
17,131
(0.3)
EBITDA margin (%)
26.7
26.2
52bps
PAT
3,534
3,443
2.6
Source: Company, Angel Research
Revenues just in-line with expectation
Infosys posted better than expected results mainly driven by better than expected
volume growth during the quarter. On sales front, the company posted a 3.2%
sequential growth in USD revenues to US$2,651mn v/s. US$2,657mn expected,
mostly volume lead. In constant currency (CC) terms, the company posted a 2.6%
qoq growth. In rupee terms, revenues came in at `17,078cr v/s. `17,131cr
expected, down 0.2% qoq.
In terms of the geographies, on CC terms, USA posted 1.2% qoq growth, while
Europe posted a growth of 4.6% qoq. India and ROW posted a growth of 16.1%
and 7.4% qoq respectively. In terms of Industries, FSI posted a CC qoq growth of
2.0%, MFG & Hi-Tech posted a qoq growth of 1.5%. Other verticals like RCL &
ECS posted a qoq growth of 2.6% and 4.9% respectively.
July 17, 2017
2
Infosys | 1QFY2018 Result Update
Exhibit 3: Trend in volume growth qoq (Effort wise)
Source: Company, Angel Research
Exhibit 4: Trend in volume and USD revenue growth (QoQ)
Source: Company, Angel Research
Industry wise, revenue from FSI, the company’s anchor vertical, which contributed
33.3% to revenues, grew by 2.6% qoq; in CC terms, revenue from FSI grew by
2.0% qoq. The Manufacturing industry vertical, which contributed 22.2% to
revenues, grew by 2.0% qoq. In CC terms, the revenue from this vertical
posted a qoq growth of 1.5%.
The Retail, CPG and Logistics segment (RCL; contributed 22.7% to revenues)
reported a 3.2% qoq growth. In CC terms, the revenue from RCL grew by 2.6%
qoq. The Energy Utilities and Communications & Services segment contributed
21.8% to revenue, reporting a growth of 5.5% qoq in revenue and 4.9% qoq on
CC basis.
July 17, 2017
3
Infosys | 1QFY2018 Result Update
Exhibit 5: Growth trend in industry segments (Reported basis)
Particulars
% to revenue
% growth QoQ
% growth YoY
FSI
33.3
2.6
7.6
Banking and financial services
27.1
2.1
5.6
Insurance
6.2
4.9
17.4
Manufacturing
22.2
2.3
3.2
RCL
22.7
3.2
(0.6)
Retail and CPG
14.2
3.9
(2.9)
Transport and logistics
1.9
(2.0)
6.0
Life Sciences
4.6
3.2
3.7
Healthcare
2.0
3.2
1.0
ECS
21.8
5.1
14.4
Energy and utilities
5.2
7.3
17.3
Communication and services
10.4
8.4
17.3
Others
6.2
(1.6)
7.7
Source: Company, Angel Research
In terms of geographies, revenue from North America grew by 1.3% qoq in CC
terms, while other geographies such as Europe grew by 3.1% qoq and RoW grew
by 6.9% qoq (both in CC terms). India posted 11.2% qoq growth in CC terms.
Exhibit 6: USD growth trend in geographies QoQ (CC basis)
Source: Company, Angel Research
July 17, 2017
4
Infosys | 1QFY2018 Result Update
Hiring and utilization
Infosys added 8,645 gross employees in 1QFY2018, of which 3,967 were lateral
additions. The net reduction number for the quarter stood at 601. Attrition (for
consolidated entity) moved up in 1QFY2018; it came down to 21.0% (LTM) v/s.
17.1% in 4QFY2017.
Exhibit 7: Employee metrics
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
Gross addition
13,268
12,717
9,120
9,130
8,645
Net addition
3,006
2,779
(66)
601
(1,811)
Attrition - LTM basis (%)*
21.0
20.0
18.4
17.1
21.0
Source: Company, Angel Research, Note-* including subsidiaries
The utilization rate including trainees grew by 200bps qoq to 80.2% (78.2% in
4QFY2017); while excluding trainees, it grew by 200bps qoq to 84.0%.
Exhibit 8: Trend in utilization (Services and Consulting + Projects)
Source: Company, Angel Research
Margins dips
On the operating front, EBIT margin came in at 24.1% v/s. 23.6% expected, a qoq
dip of 50bps. Impact of wage hikes and visa expenses, apart from rupee
appreciation were the major drags on profitability. However, the fall was lower
than expected on the back of better than expected volume growth. Margin
pressures arising out of higher variable pay, visa expenses were partly offset by
higher utilization (+90bp) and better realization (+50bps).
July 17, 2017
5
Infosys | 1QFY2018 Result Update
Exhibit 9: Trend in EBIT margin
Source: Company, Angel Research
Client pyramid
Infosys added 59 new clients (gross additions) during the quarter, taking its
total active client base to 1,164. The client addition was across the board. The
company added 5 clients in the US100+mn, 6 clients in the US$20+mn.
Exhibit 10: Client metrics
Particulars
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
Top client (% of revenue)
3.6
3.5
3.1
3.3
3.3
Gross Client addition
95
78
77
71
59
Active client
1126
1136
1152
1162
1164
US$1mn-5mn
306
300
316
316
327
US$5mn-10mn
88
91
80
93
89
US$10mn-20mn
93
97
97
98
93
US$20mn-50mn
35
35
36
35
41
US$50mn-100mn
21
24
22
25
25
US$100mn-200mn
11
12
14
13
18
US$200mn-300mn
6
5
5
5
5
US$300mn plus
1
1
1
1
1
Source: Company, Angel Research
Concall Highlights
Revenue growth in the BFSI vertical is expected to bounce back 2HFY2018
onwards because of a lag between an improving macroeconomic situation in
the US & that translating into higher spend.
Changes in the regulatory landscape around visa usage are anticipated.
However, the company has been driving local hiring, and reducing
dependency on H1B visas.
Infosys maintained its guidance of EBIT margin band of 23-25% for the
medium term.
July 17, 2017
6
Infosys | 1QFY2018 Result Update
Investment arguments
Revenue guidance reiterated for FY2018: The Management has given the revenue
growth guidance for FY2018, which is moderate. The company has guided for
6.5-8.5% CC growth. This implies CC revenue growth of 2.2-3.0% qoq for the
future quarters. The company faced multiple challenges in FY2017 among which
execution issues in Consulting and the loss of the RBS contract were the major
ones, resulting in a loss of revenue growth momentum. For FY2017, the company
posted 8.3% growth in CC terms v/s. a guidance of 8.4-8.8% growth (in CC
terms). Currently, we have factored a growth for FY2018 (INR and USD growth of
8.0% and 8.0% respectively). Over FY2017-19E, we expect USD and INR revenue
to grow at a CAGR of 8.5% and 8.5% respectively.
Operating margin likely to be range bound in near term: For FY2018, the
company has reiterated its guidance for EBIT margins of 23-25%, mainly factoring
in currency impact and investment in onsite facility. For FY2017, the EBIT margins
came in at 24.7%, which was against the guidance of 24-26%. Over FY2017-19E,
we expect an EBIT CAGR of 6.1%, with FY2018E and FY2019E EBIT margins
expected to come in at 23.6% respectively. The moderation in margin is expected
to be for the near term, as the company plans to move towards automation, in
order to safeguard its EBIT margin pressures.
Outlook and valuation
The company has downgraded its USD revenue growth guidance for FY2018 to
6.5-8.5% on CC basis. We expect the company to post ~8.0% USD revenue
growth in FY2018. The company has changed its capital allocation policy from
paying out 50% of PAT to 70% of Free Cash Flow. Additionally, it would payout
US$2bn in FY2018, however, the mode and timeline would become clear over
time. The stock currently trades at a valuation of 14.0x its FY2019E earnings. We
recommend a BUY on the stock with a Target Price of `1,179.
Exhibit 11: Key assumptions
Parameters
FY2018E
FY2019E
Revenue growth - USD terms (%)
8.0
9.0
USD-INR rate
67.1
67.1
Revenue growth - INR terms (%)
8.0
9.0
EBITDA margin (%)
26.0
26.0
Tax rate (%)
28.0
28.0
EPS growth (%)
3.0
7.7
Source: Company, Angel Research
July 17, 2017
7
Infosys | 1QFY2018 Result Update
Exhibit 12: One-year forward PE (x)
Source: Company, Angel Research
Exhibit 13: Recommendation summary
Company
Reco
CMP Tgt. price
Upside
FY2019E FY2019E
FY2017-19E
FY2019E
FY2019E
(`)
(`)
(%)
EBITDA (%)
P/E (x)
EPS CAGR (%) EV/Sales (x)
RoE (%)
HCL Tech
Buy
851
1,014
19.1
20.9
12.6
6.2
1.8
20.6
Infosys
Buy
972
1,179
21.3
26.0
14.0
5.3
2.2
19.6
TCS
Accumulate
2,399
2,651
10.5
27.6
15.4
7.8
3.0
29.8
Tech Mahindra
Buy
388
533
37.5
15.0
10.2
8.6
1.0
16.3
Wipro
Accumulate
260
280
7.9
20.3
13.6
4.4
1.2
13.4
Source: Company, Angel Research
Company Background
Infosys is the second largest IT company in India, employing over
2,00,364
professionals (as of FY2017). The company services more than 1,000 clients
across various verticals, such as financial services, manufacturing, telecom, retail
and healthcare. Infosys has the widest portfolio of service offerings amongst Indian
IT companies, spanning across the entire IT service value chain - from traditional
Application Development and Maintenance to Consulting and Package
Implementation to Products and Platforms.
July 17, 2017
8
Infosys | 1QFY2018 Result Update
Profit and loss statement (IFRS, consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Net sales
50,133
53,319
62,441
68,484
73,963
80,619
Cost of revenue
30,767
31,817
37,595
41,550
37,721
41,116
Gross profit
19,366
21,502
24,846
26,934
28,476
31,038
% of net sales
38.6
40.3
39.8
39.3
38.5
38.5
Selling and mktg exp.
2,625
2,941
3,431
3,591
4,068
4,434
% of net sales
5.2
5.5
5.5
5.2
5.5
5.5
General and admin exp.
3,107
3,663
4,292
4,739
5,177
5,643
% of net sales
6.2
6.9
6.9
6.9
7.0
7.0
EBITDA
13,634
14,898
17,123
18,604
19,230
20,961
% of net sales
27.2
27.9
27.4
27.2
26.0
26.0
Dep and amortization
1,374
1,066
1,503
1,703
1,775
1,935
% of net sales
2.7
2.0
2.4
2.5
2.4
2.4
EBIT
12,260
13,832
15,620
16,901
17,455
19,026
% of net sales
24.5
25.9
25.0
24.7
23.6
23.6
Other income
2,669
3,427
3,122
3,080
3,080
3,080
Profit before tax
14,929
17,259
18,742
19,981
20,535
22,106
Provision for tax
4,062
4,929
5,251
5,598
5,750
6,190
% of PBT
27.2
28.6
28.0
28.0
28.0
28.0
PAT
10,648
12,330
13,491
14,383
14,785
15,916
Exceptional item
219
-
-
(30)
-
-
Adj. PAT
10,867
12,330
13,491
14,353
14,785
15,916
EPS (`)
47.3
53.7
59.0
62.5
64.4
69.3
July 17, 2017
9
Infosys | 1QFY2018 Result Update
Balance sheet (IFRS, consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Current assets
Cash and cash equivalents
25,950
30,367
32,697
22,625.0
32,430.8
37,082.0
Available for sale fin. assets
2,197
874
75
9,970
9,970
9,970
Invest. in certificates of deposit
859
93
103
71
71
71
Trade receivables
8,351
9,713
11,330
12,322
12,426
13,544
Unbilled revenue
2,811
2,845
3,029
3,648
3,648
3,648
Derivative financial instrum.
215
101
116
284
284
284
Prepayments and other CA
2,636
3,296
4,448
4,856
4,290
4,676
Total current assets
43,019
47,289
51,798
53,776
63,119
69,275
Non-current assets
Property, plant and equipm.
7,887
9,125
10,530
11,716
11,916
12,116
Goodwill
2,157
3,091
3,764
3,652
2,157
2,158
Intangible assets
342
638
985
776
342
343
Available for sale fin. Assets
1,252
1,345
1,811
6,382
1,252
1,253
Deferred income tax assets
656
537
536
540
656
657
Income tax assets
1,522
4,089
5,230
5,716
5,716
5,716
Other non-current assets
220
238
735
797
1,793
1,794
Total non-current assets
14,036
19,063
23,591
29,579
23,832
24,037
Total assets
57,055
66,352
75,389
83,355
86,951
93,312
Current liabilities
Trade payables
173
140
386
367
173
174
Derivative financial instrum.
-
3
5
2
-
1
Current income tax liabilities
2,187
2,818
3,410
3,885
3,787
3,788
Client deposits
40
27
28
32
40
41
Unearned revenue
660
1,052
1,332
1,777
660
661
Employee benefit obligations
954
1,069
1,341
1,359
954
955
Provisions
379
478
512
405
379
380
Other liabilties
4,745
5,796
6,225
6,186
5,545
5,546
Total current liabilities
9,138
11,383
13,239
14,013
11,538
11,546
Non-current liabilities
Deferred income tax liabilties
64
160
256
207
64
65
Employee benefit obligations
323
46
115
153
323
324
Other liabilities
-
-
-
-
-
-
Total non-current liabilities
387
206
371
360
387
388
Total liabilities
9,525
11,589
13,610
14,373
11,925
11,934
Equity
Share capital
286
572
1,144
1,144
1,144
1,144
Share premium
3,090
3,090
2,241
2,356
2,356
2,356
Retained earnings
43,584
50,531
57,655
65,056
70,955
77,306
Other components of equity
570
570
739
426
571
572
Total equity
47,530
54,763
61,779
68,982
75,026
81,378
Total liabilties and equity
57,055
66,352
75,389
83,355
86,951
93,312
July 17, 2017
10
Infosys | 1QFY2018 Result Update
Cash flow statement (IFRS, consolidated)
Y/E March (` cr)
FY2014 FY2015
FY2016
FY2017 FY2018E FY2019E
Pre tax profit from operations
12,260
13,832
15,620
16,901
17,455
19,026
Depreciation
1,374
1,066
1,503
1,703
1,775
1,935
Pre tax cash from operations
13,634
14,898
17,123
18,604
19,230
20,961
Other income/prior period ad
2,669
3,427
3,122
3,080
3,080
3,080
Net cash from operations
16,303
18,325
20,245
21,684
22,310
24,041
Tax
4,062
4,929
5,251
5,598
5,750
6,190
Cash profits
12,241
13,396
14,994
16,086
16,560
17,851
(Inc)/dec in current assets
(2,271)
(1,942)
(2,968)
(2,187)
462
(1,504)
Inc/(dec) in current liabilties
2,852
2,245
1,856
774
(2,475)
8
(Inc)/dec in net trade WC
581
303
(1,112)
(1,413)
(2,013)
(1,496)
Cashflow from operating actv.
12,822
13,699
13,882
14,673
14,548
16,355
(Inc)/dec in fixed assets
(2,793)
(2,304)
(2,908)
(2,889)
(1,975)
(2,135)
(Inc)/dec in investments
(1,317)
2,089
789
(9,863)
-
-
(inc)/dec in sale of financial assets
(858)
(93)
(466)
(4,571)
5,130
(1)
(Inc)/dec in deferred tax assets
(583)
(2,448)
(1,140)
(490)
(116)
(1)
Inc/(dec) in other non current liab.
119
(181)
165
(11)
27
1
(Inc)/dec in other non current ass.
(138)
(1,248)
(1,517)
259
933
(3)
Cashflow from investing actv.
(5,570)
(4,185)
(5,077)
(17,565)
3,999
(2,139)
Inc/(dec) in debt
-
-
-
-
-
-
Inc/(dec) in equity/premium
1,099
450
889
515
(218)
(1,040)
Dividends
4,233
5,547
7,364
7,695
8,523
8,524
Cashflow from financing actv.
(3,134)
(5,097)
(6,475)
(7,180)
(8,741)
(9,565)
Cash generated/(utilised)
4,118
4,417
2,330
(10,072)
9,806
4,651
Cash at start of the year
21,832
25,950
30,367
32,697
22,625
32,431
Cash at end of the year
25,950
30,367
32,697
22,625
32,431
37,082
July 17, 2017
11
Infosys | 1QFY2018 Result Update
Key ratios
Y/E March
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Valuation ratio (x)
P/E
20.5
18.1
16.5
15.5
15.1
14.0
P/CEPS
18.2
16.7
14.9
13.9
13.5
12.5
P/BVPS
4.7
4.1
3.6
3.2
3.0
2.7
Dividend yield (%)
1.6
1.9
2.6
2.6
3.3
3.6
EV/Sales
3.9
3.6
3.0
2.8
2.4
2.2
EV/EBITDA
14.2
12.9
11.1
10.2
9.4
8.4
EV/Total assets
3.4
2.9
2.5
2.3
2.1
1.9
Per share data (`)
EPS
47
54
59
63
64
69
Cash EPS
53
58
65
70
72
78
Dividend
16
19
25
25
32
35
Book value
207
239
269
300
327
354
Dupont analysis
Tax retention ratio (PAT/PBT)
0.7
0.7
0.7
0.7
0.7
0.7
Cost of debt (PBT/EBIT)
1.2
1.2
1.2
1.2
1.2
1.2
EBIT margin (EBIT/Sales)
0.2
0.3
0.3
0.2
0.2
0.2
Asset turnover ratio (Sales/Assets)
0.9
0.8
0.8
0.8
0.9
0.9
Leverage ratio (Assets/equity)
1.2
1.2
1.2
1.2
1.2
1.1
Operating ROE
22.4
22.5
21.8
20.9
19.7
19.6
Return ratios (%)
RoCE (pre-tax)
21.5
20.8
20.7
20.3
20.1
20.4
Angel RoIC
43.7
39.5
36.7
33.3
39.2
41.2
RoE
22.9
22.5
21.8
20.8
19.7
19.6
Turnover ratios(x)
Asset turnover (fixed assets)
6.4
5.8
5.9
5.8
6.2
6.7
Receivables days
81
86
84
85
79
78
July 17, 2017
12
Infosys | 1QFY2018 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
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registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any
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sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
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Disclosure of Interest Statement
Infosys
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
July 17, 2017
13