Infosys: It Looks Cheap Technically, But It Isn't Fundamentally

Summary Infosys has fallen 50%, but its 14x forward P/E accompanies just 0.55% organic growth at the FY27 guidance midpoint. AI pricing pressure and weak Western IT spending limit fundamental appeal. Quarterly free cash flow of $955M and $3.6B in large deal wins support recovery potential. Stronger client budgets and profitable AI growth would strengthen the investment case. INFY is a moderate Technical Buy: a ₹1,490 bull-case target implies 40.5% upside in 12 months. Discounted earnings suggest fair value today, so I remain on the sidelines. bingokid/iStock via Getty Images Since my last Infosys ( INFY ) analysis , the stock is down 50%. This was about 2 years ago. I have not owned the stock, and I am glad I did not. A plethora of conditions led to this, This article was written by Oliver Rodzianko 7.28K Followers Follow Oliver Rodzianko is Director of Invictus Origin and a private investor managing a high-alpha portfolio strategy focused on rotation and disciplined cash deployment during market dislocations. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ONON either through stock ownership, options, or other derivatives. 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.