Time to Revisit Infosys?
Infosys Limited (INFY) provides IT services in business consulting, technology, engineering and outsourcing services. Infosys is based in India and has 156,000 employees.
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We were last in INFY in January 2013 after selling at $52 and realizing a 21% profit. More than a year later, it has again shown up on our low valuation screen. While we took time out from INFY for more than a year, the capital did not rest as it was working hard in other Purple Chip opportunities. By turning the inventory based on clear historical valuation levels we are working our long-term positions more often.
Note that INFY has in excess of $4 billion of cash on the books. We are initiating a full position.
Purple Chips 12 -18 month target: $USD 70.00
LOW VALUATION IN INFOSYS AT $USD 52.69 (INFY, $52.58) FULL POSITION
PURPLE CHIPS TARGET: $70.00 POSITION SIZE: FULL (5.0) P/E: 17.0X DIV: $0.82 (1.56%) MKT CAP: $30B CASH: $4.0B RETURN ON CAPITAL: 37.1% EARNINGS YIELD: 9.1% 5 YR EPS Growth rate*:9.0% P/E/G Ratio: 1.95 EPS: $3.02 2015 EST.: $3.35 2016 EST.: $3.91
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
