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Friday, June 20, 2008

DG - Infosys Technologies Ltd - Annual Report Analysis

Infosys Technologies Ltd - Annual Report Analysis

 

The Infosys Annual Report 2007-08 contains a human touch with the key theme being various company initiatives towards attracting, training, retaining and empowering talent. FY08 was another watershed year for Infosys with robust business performance (industry-leading dollar growth), judicious expenditure management and strengthened financial position. Infosys, the behemoth, continues to move from strength to strength. Our analysis of the Annual Report revealed following interesting findings.

 

ä       Income Statement – robust growth and unparalleled size and profitability 

ä       Special dividend and increase in payout ratio reflects company’s confidence in growth

ä       Balance Sheet – strong, debt-free and highly liquid

ä       Superior return ratios generate positive EVA

ä       Cash Flows – more than sufficient to cover growth, dividends and contingencies

ä       Corporate Governance – leading across industries

ä       Re-organization to sustain competitiveness

 

However, we maintain SELL on Infosys as current valuations are above fair value. Our target price of Rs1,670 represents 10% downside.  

 

 

Please find attached a detailed note on the same.

 

 

Warm Regards,

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Regards

BigGains !!
MARKETPLACE
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