Infosys: Discipline Priced As Decline

Sanjay Swamy 177 Followers Follow Summary Infosys is rated Strong Buy with a $15.25 target, offering 30% upside and a 4.3% dividend yield. INFY's reported revenue shortfall is largely due to deliberate offshore shifts and declined low-return deals, not demand loss. Underlying business growth is 2.4–2.8%, exceeding the 2% perpetual growth implied by current valuation, even at cycle lows. Dividend safety is robust, with an 85% FCF return policy, strong margins, and a debt-free balance sheet supporting capital returns. JHVEPhoto/iStock Editorial via Getty Images Investment Thesis I rate Infosys ( INFY ) a Strong Buy with a $15.25 price target, roughly 30% above the current ADR price near $11.75, with a 4.3% dividend collected along the way. Infosys is one of India's two This article was written by Sanjay Swamy 177 Followers Follow Sanjay is a value investor who adapts time-tested investment principles for the modern economy, focusing on companies whose true economic power is obscured by traditional screening metrics. He has been investing since middle school, later sharpening his analytical framework as an analyst for Stanford’s Charles R. Blyth Fund and at Schroders. Sanjay holds a B.A. in Economics from Stanford University and is a Graduate Associate at Franklin Templeton. While he maintains a strong analytical focus on the TMT sector, his framework is designed to identify structural mispricings and unrecognized value wherever it can be found. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in INFY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.