Infosys Stock Analysis — CMA Sandip Framework Scorecard

Section 1Snapshot

SectorIT Services

CMP~₹1,595

RevenueFY26 Revenue ₹1,78,650 Cr, CC Growth +3.1%

ConvictionMedium

Last Updated22-Sep-26

Section 2Scorecard

Category	Parameter	Wt.	Score	Notes
Quality	Business Quality	10.00%	7.5	📌 Infosys FY26 Release, Apr 2026 $14.9B in large-deal TCV for FY26 shows continued strong client trust, even as overall revenue growth remained modest amid macro headwinds.
Quality	Management Quality	10.00%	8	📌 Sharekhan (Mirae Asset), Jan 2026 Upgraded FY26 guidance twice during the year (0-3% → 1-3% → 3-3.5%) as execution outperformed initial caution — credible, not over-promising.
Quality	Growth Visibility	10.00%	8	📌 Sharekhan, Jan 2026 Q3 FY26 TCV surged 92% YoY to $4.8B including a $1.6B NHS mega deal; 9M TCV of $11.7B already exceeded full-year FY25 TCV.
Quality	Moat	10.00%	7	📌 Sharekhan, Jan 2026 Infosys Topaz (AI platform) is increasingly positioned as a client differentiator, though the IT services moat overall is narrower than in banking/consumer sectors.
Quality	Capital Allocation	6.67%	8	📌 Infosys FY26 Release, 2026 Completed its largest-ever buyback (₹18,000 Cr) alongside continued dividend payouts — consistent, shareholder-friendly capital return.
Quality	Balance Sheet	6.67%	9	📌 Infosys FY26 Release, 2026 Free cash flow consistently above 100-130% of net profit across FY26 quarters — an exceptionally clean, asset-light balance sheet.
Quality	Risk Profile	6.66%	6.5	📌 Sharekhan, Jan 2026 Manufacturing and retail sectors showed macro headwinds through FY26; margins absorbed wage hikes and currency pressure without much cushion.
Price	Valuation	13.33%	6.5	📌 Sharekhan, Jan 2026 Trades at ~20.6x FY27E and 19.2x FY28E PE — a reasonable multiple given the record deal-win momentum and guidance upgrades through FY26.
Price	FCF Yield	13.33%	8	📌 Infosys FY26 Release, 2026 Adjusted FCF consistently at 100-130% of net profit is an outstanding cash-conversion profile, supporting a genuinely healthy FCF yield.
Price	Reverse DCF	13.34%	6.5	📌 Sharekhan, Jan 2026 Current valuation assumes FY27 acceleration on the back of record TCV converting to revenue — a reasonable bet given the demonstrated deal pipeline.
Quality 60.00% / Price 40.00%			7.42

Section 3Investment Thesis

Rule: if you can't explain it in 5 bullets, you probably don't understand it clearly.

1

📌 Infosys FY26 Release, Jan 2026

FY26 revenue guidance was upgraded twice during the year (to 3.0-3.5% CC growth) as execution consistently beat initial cautious expectations.

2

📌 Sharekhan (Mirae Asset), Jan 2026

Record $14.9B in large-deal TCV for FY26, including a standout $1.6B NHS mega deal in Q3 — 9-month TCV of $11.7B already exceeded the full FY25 total.

3

📌 Infosys FY26 Release, 2026

Free cash flow has stayed consistently above 100% of net profit through FY26 (reaching 131% in Q2), alongside completion of the company's largest-ever ₹18,000 Cr buyback.

Section 4What Can Go Wrong?

This section is more important than the thesis.

1

📌 Sharekhan, Jan 2026

Manufacturing and retail verticals showed persistent macro headwinds through FY26, dragging on otherwise resilient overall growth.

2

📌 Business Standard Research Note, Jul 2025

Margins absorbed wage hikes (100bps), currency movements (30bps), and other cost pressures through the year, showing limited buffer for further shocks.

3

📌 Sharekhan, Jan 2026

TCS's TCV declined 8.8% YoY in the same period Infosys grew 92% — a reminder that large-deal wins can be lumpy and quarter-to-quarter comparisons should be read carefully.

Section 5Buy Triggers

Trigger	Action
TCV-to-revenue conversion shows through in accelerating FY27 growth as guided	Add
Manufacturing/retail vertical headwinds ease for 2+ consecutive quarters	Review

Section 6Sell Triggers

1FY27 revenue growth fails to accelerate despite the record FY26 TCV pipeline

2Operating margin falls below the 20% floor of guided range

3Large-deal win momentum reverses sharply from the FY26 record pace

Section 7Valuation · 2026

Metric	Current	Historical	Source
PE (FY27E/FY28E)	20.6x / 19.2x	—	Sharekhan, Jan 2026
TCV (FY26)	$14.9 Bn	—	Infosys FY26 Release, 2026
Operating Margin	20-22% (guided)	—	Infosys FY26 Release, 2026
Revenue Growth (FY26 CC)	+3.1%	Upgraded from 0-3% guidance	Infosys FY26 Release, 2026

Section 8Capex Commitments

a)

📌 Sharekhan, Jan 2026

Continued investment in Infosys Topaz (AI platform) to differentiate its enterprise AI offering against IT services peers.

b)

📌 Infosys Q3FY26 Commentary, Jan 2026

Ongoing talent investment, including onboarding ~20,000 freshers in FY26, positioning for the anticipated demand recovery.

Section 9Competitive Landscape

Competitor	Segment	Threat
TCS	IT Services	High
HCL Technologies / Wipro	IT Services	Medium
Accenture / Cognizant (global)	IT Services / Consulting	Medium