20 April 2020
4QFY20 Results Update | Sector: Technology
Infosys
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
CMP: INR653
TP: INR775 (+19%)
Buy
COVID-19 leads to guidance withdrawal!
Cautious commentary on expected lines; Reiterate Buy
INFO IN
4,571
2780.7 / 35
847 / 511
6/5/10
7240
Financials & Valuations (INR b)
Y/E Mar
2020 2021E 2022E
Sales
908
915 1,015
EBIT Margin (%)
21.3
20.6
22.2
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div Yield (%)
166
39.0
5.3
145
25.3
20.4
44.8
16.7
4.5
13.3
2.7
156
36.8
(5.7)
169
21.8
17.9
54.4
17.7
3.9
12.2
3.1
183
43.1
17.1
188
Despite COVID-19 impact on utilization, Infosys was able to defend its gross
margins (QoQ, 33.4%), which is comforting. Large deal signings in Mar’20
(~USD1.7b v/s USD 1.8b in Dec’19) were impacted. However, it is important
to note that run-rate of new deal wins showed a meaningful increase (~50%
QoQ). Commentary around continued and broad-based deal wins over the
previous ~4 weeks is encouraging. In addition, anecdotal evidence of deal
transitions/ramp-ups in a remote manner is reassuring. We expect supply-
side aspects to ease off even as Work from Home (WFH) may outlast
lockdowns for a significant share of the workforce. In light of the heightened
uncertainty in the near term, we were not taken aback by the cautious
outlook of the company. Beyond near-term challenges, Infosys (INFO)
should be a key beneficiary of digital IT spends by enterprises.
We have marginally cut our FY21/FY22E EPS estimates as we build in heavier
pricing pressure, the impact of which is partially offset by the change in our
exchange rate assumption. Reiterating
Buy.
22.9
Revenue and normalized EBIT margins largely in line
19.3
In 4QFY20, revenue (USD)/EBIT (INR)/PAT increased 4%/7%/6% YoY (v/s our
46.4
estimates of 5%/8%/3% YoY).
15.1
3.5
10.0
3.1
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-20 Dec-19 Mar-19
13.2
13.2
12.8
24.7
24.0
22.9
31.4
32.2
34.5
30.7
30.7
29.8
FII Includes depository receipts
As client approvals for WFH were not received in certain cases, revenue
witnessed ~USD32m (~1% revenue) drop.
INFO witnessed broad-based decline across geographies with its Indian
business witnessing the most pronounced impact (-8.5% QoQ, USD).
Barring Hi Tech (+2.5% QoQ, USD), other verticals reported revenue decline.
While Retail witnessed only a marginal decline (0.1% QoQ, USD), we believe
the full impact of COVID-19 is yet to come.
Adjusted for a couple of one-offs (earlier than usual recognition of visa costs
and higher than usual CSR expenses), EBIT margins were largely in line with
expectations.
Decline in utilization (-90bp impact), H-1B visa costs (-40bp impact) and
receivables hit (-50bp impact) were the margin headwinds. INR depreciation
(+50bp impact), reduced travel and other cost optimization measures
(+50bp impact) were the key margin tailwinds.
Large deal bookings in 4QFY20 stood at ~USD1.7b (~56% - New deals).
The company had strong collections with DSO declining by 4 days.
The Company hinted at no change in capital return policy.
In line with our expectations, the company suspended its tradition of guiding
for revenue growth/profitability because of the heightened uncertainty.
Despite encouraging medium-term prospects, INFO has hinted at a
challenging near term with no clear view on recovery.
Deal activity even for the previous 4 weeks was stated to be broad based.
While deal pipeline is still strong, conversion is expected to slow down.
Cautious management commentary
Sudheer Guntupalli – Research analyst
(Sudheer.Guntupalli@MotilalOswal.com); +91 22 5036 2749
Research analyst: Mohit Sharma
(Mohit.Sharma@MotilalOswal.com); +91226129 1531/
Heenal Gada
(Heenal.Gada@motilaloswal.com); +912250362654
(Mohit.Sharma@MotilalOswal.com)
refer through important disclosures made at the last page of the Research Report.
Investors are advised to
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Infosys
Near-term headwinds are expected to impact all verticals and geographies.
However, company hinted at increased interest in areas like Cloud,
Virtualization and Security, etc. in response to the COVID-19 crisis.
INFO has called out a trend that clients are cutting back, reprioritizing and
delaying discretionary spends. While nothing was alarming so far, the company
did highlight that it is witnessing requests for price cuts/credit period extension.
Management was optimistic that the company will end up on the positive side
of potential vendor consolidation.
While there are not going to be COVID-19 related lay-offs, involuntary attrition
related to performance may still continue. Suspension of salary hikes,
promotions, incremental hiring and reduction in travel costs, capex and
discretionary spends are key margin defenses.
Valuation and view – Near-term uncertainties remain
The COVID-19 pandemic is expected to pose continued near-term challenges on
demand, supply, pricing and working capital fronts.
However, given the company’s historical track record of adapting to multiple
business challenges and technology change cycles, we believe it will be able to
navigate through COVID-19 headwinds.
Given the company’s usually conservative tone when it comes to its guidance,
we are not taken aback by its outlook in the current context.
We expect INFO to be a key beneficiary of the recovery in IT spends in FY22E.
The stock is currently trading in line with its long-term cross cycle average. Our
TP implies 18x FY22E EPS. Retain
Buy.
(INR Bn)
Quarterly Performance (IFRS)
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
1Q
2,831
0.9
191
12.0
35.8
12.0
50
26.0
23.7
7
26.2
36
-2.1
1.6
8.9
FY19
2Q
3Q
2,921 2,987
3.2
2.3
206
214
17.3
20.3
35.6
34.5
11.8
11.9
54
54
26.0
25.3
23.7
22.6
7
8
27.0
27.3
41
36
13.8
-12.2
10.3
-29.6
9.4
9.3
4Q
3,060
2.4
215
19.1
33.7
12.2
51
23.9
21.4
7
22.8
41
13.0
10.5
9.4
1Q
3,131
2.3
218
14.0
32.2
11.7
52
23.6
20.5
7
26.4
38
-6.8
5.3
8.8
FY20
2Q
3Q
3,210 3,243
2.5
1.0
226
231
9.8
7.9
33.4
33.4
11.7
11.5
56
58
24.9
25.1
21.7
21.9
6
8
26.5
23.6
40
45
6.2
10.6
-1.8
23.7
9.5
10.5
FY19
FY20
4Q
3,197 11,812 12,781
-1.4
8.0
8.2
233
827
908
8.0
17.2
9.8
33.4
34.8
33.1
12.2
12.0
11.8
57
209
223
24.4
25.3
24.5
21.2
22.8
21.3
6
29
26
21.1
25.9
24.4
43
154
166
-2.9
6.3
-4.3
8.0
10.2
37.1
39.0
Est.
4QFY20E
3,211
-1.0
231
7.3
33.0
11.4
57
24.8
21.6
7
26.5
42
-5.7
3.2
9.9
Var
(%/bp)
-0.4
-42bp
0.7
70bp
38bp
80bp
-1.1
-42bp
-42bp
-22.5
-538bp
3.0
281bp
308bp
3.0
20 April 2020
2
 Motilal Oswal Financial Services
Infosys
Key Performance Indicators
Y/E March
Revenue (QoQ CC %)
Margins
Gross Margin
EBIT Margin
Net Margin
Operating metrics
Headcount
Attrition (%)
Deal Win TCV (USD b)
Key Verticals (YoY CC %)
BFSI
Retail
Key Geographies (YoY CC%)
North America
Europe
1Q
2.3
35.8
23.7
18.9
FY19
2Q
4.2
35.6
23.7
19.9
3Q
2.7
34.5
22.6
16.9
4Q
2.1
33.7
21.4
18.9
1Q
2.8
32.2
20.5
17.4
FY20
2Q
3.3
33.4
21.7
17.8
FY19
3Q
1.0
33.4
21.9
19.3
4Q
-0.8
33.4
21.2
18.6
10.5
34.8
22.8
18.6
FY20
9.8
33.1
21.3
18.3
2,09,905 2,17,739 2,25,501 2,28,123 2,29,029 2,36,486 2,43,454
23.0
22.2
19.9
20.4
23.4
21.7
19.6
1.1
2.0
1.6
1.6
2.7
2.8
1.8
2.5
7.3
4.7
10.9
5.4
13.7
6.7
10.8
9.4
10.6
8.7
9.8
8.5
11.4
12.6
11.6
11.3
6.9
13.5
11.4
10.3
1.1
11.9
14.6
6.2
2.5
10.1
12.0
2,42,371 2,28,123 2,42,371
20.7
20.4
20.7
1.6
6.3
9.0
5.7
4.2
5.5
9.6
6.4
10.9
8.2
10.9
8.2
3.6
10.2
11.8
Management commentary highlights
In line with our expectations, the company has suspended its tradition of
guiding for revenue growth/profitability because of heightened uncertainty.
Despite encouraging medium-term prospects, INFO has hinted at a challenging
near-term with no clear view on recovery.
Deal activity even over the previous 4 weeks was stated to be broad based.
While deal pipeline is still strong, conversion is expected to slow down.
Near-term headwinds are expected to impact all verticals and geographies.
Management has hinted at increased interest in areas like Cloud, Virtualization
and Security, etc. in response to the COVID-19 crisis.
INFO has called out a trend that clients are cutting back, reprioritizing and
delaying discretionary spends.
While nothing is alarming so far, the company did indicate that it is witnessing
requests for price cuts and extension of credit terms.
Management’s discussions with clients indicate that INFO will possibly end up
on the positive side of potential vendor consolidation.
Supply-demand mismatch is expected to continue for some more time as the
earlier hiring was done with different expectations.
While there would not be COVID-19 related lay-offs, involuntary attrition related
to performance may still continue.
Suspension of salary hikes, promotions, incremental hiring and reduction in
travel costs, capex and discretionary spends are key margin defenses.
The company has hinted at no change in its capital return policy.
In 4QFY20, revenue (USD) / EBIT (INR)/PAT increased by 4%/7%/6% YoY (v/s our
estimates of 5%/8%/3% YoY).
As client approvals for WFH were not received in certain cases, revenue
witnessed ~USD32m (~1% revenue) drop.
INFO witnessed broad-based decline across geographies with its Indian business
witnessing the most pronounced impact (-8.5% QoQ, USD).
Barring Hi Tech (+2.5% QoQ, USD), other verticals reported revenue decline.
While Retail witnessed only a marginal decline (0.1% QoQ, USD), we believe the
full impact of COVID-19 is yet to come.
Revenue and normalized EBIT margins largely in line
20 April 2020
3
 Motilal Oswal Financial Services
Infosys
Exhibit 1: While COVID-19 impacted BFSI growth…
Infosys - BFSI Organic (YoY CC %)
7%
6%
4%
1%
-1%
Exhibit 2: …full impact in Retail has not yet come
Infosys - Retail (YoY CC %)
11%
7%
4%
3%
1%
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Growth in key geographies like the US and…
Infosys - US (YoY CC %)
14%
Exhibit 4: …Europe moderated due to COVID-19
Infosys - Europe Organic (YoY CC %)
6%
5%
12%
12%
10%
4%
3%
6%
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Mar-19
Jun-19
Sep-19
Dec-19
0%
Mar-20
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 5: While BFSI reported sequential decline…
Infosys - BFSI (QoQ %)
Exhibit 6: …full COVID-19 impact in Retail has not yet come
Infosys - Retail (QoQ %)
2%
2%
1%
0%
0%
0%
-1%
-2%
-1%
0%
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 7: Key geographies like US and Europe reported…
Infosys - US (QoQ %)
4%
3%
2%
1%
Exhibit 8: …a sequential decline
Infosys - Europe (QoQ %)
2%
2%
1%
-1%
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Mar-19
-2%
Jun-19
Sep-19
Dec-19
-2%
Mar-20
Source: Company, MOFSL
Source: Company, MOFSL
20 April 2020
4
 Motilal Oswal Financial Services
Infosys
Adjusted for a couple of one-offs (earlier than usual recognition of visa costs and
higher than usual CSR expenses), EBIT margins were largely in line with
expectations.
Decline in utilization (-90bp impact), H-1B visa costs (-40bp impact) and
receivables hit (-50bp impact) were the margin headwinds. INR depreciation
(+50bp impact), reduced travel and other cost optimization measures (+50bp
impact) were the key margin tailwinds.
Large deal bookings in 4QFY20 stood at ~USD1.7b (~56% - New deals).
The company had strong collections with DSO declining by 4 days.
Exhibit 10: Utilization was impacted due to COVID-19
Utilization (excluding trainees)
84%
85%
82%
83%
84%
84%
Exhibit 9: Increase in attrition was performance related
Attrition Consolidated (LTM %)
23%
23%
22%
20%
22%
20%
20%
21%
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 11: Large deal signings were impacted in Mar’20
USD b, 4qtr rolling avg.
123%
69%
89%
105%
80%
59%
6%
44%
YoY %, 4qtr rolling avg.
Exhibit 12: However, new wins reported robust increase
New deal wins (USD b)
Renewals (USD b)
1.6
0.8
0.6
0.5
1.1
1.2
0.5
0.6
0.9
1.2
0.5
2.2
1.2
0.6
0.7
0.9
Source: Company, MOFSL
Source: Company, MOFSL
Valuation view – Near-term uncertainties remain
The COVID-19 pandemic is expected to pose continued near-term challenges on
demand, supply, pricing and working capital fronts.
However, we take a leap of faith in the company’s ability to navigate through
these issues given its historical track record of adapting to multiple business
challenges and technology change cycles.
Given the company’s usually conservative tone when it comes to its guidance,
we are not taken aback by its outlook in the current context.
We expect INFO to be a key beneficiary of recovery in IT spends in FY22E.
The stock is currently trading at ~18x FY21E earnings, in line with its long-term
cross cycle averages. Our TP implies no further re-rating. Retain Buy.
20 April 2020
5
 Motilal Oswal Financial Services
Infosys
Exhibit 13: Revision to our estimates
Revised
FY21E
FY22E
74.5
74.5
12,276
13,630
(4.0)
11.0
20.6
22.2
156
183
36.8
43.1
Earlier
FY21E
FY22E
73.5
73.5
12,585
13,839
(2.0)
10.0
21.3
22.5
163
189
38.4
44.6
Change
FY21E
FY22E
1.4%
1.4%
-2.5%
-1.5%
-200bps
110bps
-60bps
-30bps
-4.2%
-3.4%
-4.2%
-3.4%
Source: MOFSL
INR/USD
USD Revenue - m
Growth (%)
EBIT margin(%)
PAT (INR B)
EPS
Exhibit 14: Over the long term, 1-year forward P/E multiples averaged to ~18x
23
21
19
17
15
13
11
Infosys 1yr fw P/E
Source: Bloomberg, MOFSL
20 April 2020
6
 Motilal Oswal Financial Services
Infosys
Operating Metrics
1QFY19
Effort (IT Services and Consulting)
Onsite
Offshore
Utilization (IT Services and Consulting)
Including trainees
Excluding trainees
Employee Metrics
Total Employees (Consolidated, in k)
S/W professional (k)
Support and sales (k)
Women employees (%)
Attrition - annualized standalone %
Attrition - annualized consolidated %
Revenues by client geography
North America
Europe
India
ROW
Revenues by Business segments
Financial Services
Retail
Communications
Energy, Utilities, Resources and Servcies
Manufacturing
Hi Tech
Life Sciences
Others
Revenues by offerings
Digital
Core
Geography YoY % CC
North America
Europe
India
ROW
Business Segments YoY % CC
Financial Services
Retail
Communications
Energy, Utilities, Resources and Servcies
Manufacturing
Hi Tech
Life Sciences
Others
DSO
Large deal TCV (USD m)
Client (% of revenues)
Top client
Top 10 client
Top 25 client
Number of active clients
New clients added in the period
Repeat business %
29%
71%
82%
86%
210
165
10
NA
21%
23%
60%
24%
3%
13%
32%
17%
13%
12%
10%
7%
7%
3%
28%
72%
5%
11%
-19%
10%
3%
7%
7%
16%
8%
8%
6%
-14%
66
1,116
3.7%
19.2%
34.9%
1,214
70
99.5%
2QFY19
28%
72%
80%
86%
218
172
10
NA
20%
22%
60%
24%
3%
13%
32%
17%
12%
12%
10%
8%
6%
3%
31%
69%
7%
11%
-12%
15%
5%
14%
8%
13%
11%
11%
2%
-6%
66
2,029
3.9%
19.4%
34.7%
1,222
73
98.2%
3QFY19
29%
71%
80%
84%
226
177
11
NA
18%
20%
60%
24%
3%
13%
33%
16%
12%
13%
10%
7%
6%
3%
32%
69%
9%
10%
-2%
20%
9%
11%
6%
17%
16%
11%
4%
-3%
67
1,570
3.4%
19.2%
33.9%
1,251
101
96.6%
4QFY19
29%
71%
79%
82%
228
180
11
NA
18%
20%
61%
24%
2%
13%
32%
16%
14%
13%
10%
8%
6%
3%
34%
66%
13%
12%
-6%
12%
8%
11%
18%
18%
17%
13%
-1%
0%
66
1,568
3.3%
19.7%
35.0%
1,279
101
95.2%
1QFY20
29%
71%
80%
83%
229
180
11
37%
22%
23%
62%
24%
2%
13%
31%
16%
14%
13%
10%
8%
6%
3%
36%
64%
14%
11%
1%
11%
11%
7%
23%
18%
13%
15%
4%
-1%
68
2,714
3.2%
20.0%
34.9%
1,336
112
99.0%
2QFY20
28%
72%
82%
85%
236
186
11
37%
19%
22%
61%
24%
3%
12%
32%
15%
13%
13%
10%
8%
6%
3%
38%
62%
12%
15%
18%
2%
10%
1%
19%
19%
17%
12%
11%
0%
66
2,847
3.2%
19.2%
34.6%
1,364
96
98.1%
3QFY20
28%
72%
80%
84%
243
191
12
38%
18%
20%
61%
24%
3%
12%
32%
15%
13%
13%
10%
8%
7%
3%
41%
59%
10%
12%
18%
0%
6%
3%
21%
9%
12%
12%
18%
12%
73
1,813
3.0%
18.9%
34.2%
1,384
84
97.2%
4QFY20
28%
72%
79%
84%
242
190
12
38%
18%
21%
62%
24%
3%
11%
31%
16%
13%
13%
10%
8%
6%
3%
42%
58%
6%
10%
22%
2%
6%
4%
3%
7%
7%
8%
12%
21%
69
1,646
3.1%
18.7%
34.1%
1,411
84
95.9%
20 April 2020
7
 Motilal Oswal Financial Services
Infosys
Financials and valuations
Income Statement
Y/E March
Sales
Change (%)
Software Develop. Exp.
SGA expenses
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Minority Interest
Adjusted PAT
Extraordinary Items
Reported PAT
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Capital Employed
Gross Block
Less : Depreciation
Net Block
Investments & Other Assets
Curr. Assets
Debtors
Cash & Bank Balance
Loans & Advances
Other Current Assets
Current Liab. & Prov
Net Current Assets
Application of Funds
2015
533
6.4
329
66
149
27.9
11
0
34
173
49
28.6
0
123
0
123
11.2
2016
624
17.1
391
77
171
27.4
15
0
31
187
53
28.0
0
135
0
135
9.4
2017
685
9.7
433
83
186
27.2
17
0
31
200
56
28.0
0
144
0
144
6.6
2018
705
3.0
451
82
190
27.0
19
0
32
203
42
20.9
0
161
0
161
11.9
2019
827
17.2
539
99
209
25.3
20
0
29
218
56
25.9
0
161
-7
169
4.7
2020
908
9.8
607
107
223
24.5
29
0
26
220
54
24.4
0
166
0
166
-1.3
2021E
915
0.7
617
109
226
24.7
37
0
24
213
56
26.5
0
156
0
156
-6.1
(INR b)
2022E
1,015
11.0
676
114
276
27.2
51
0
23
249
66
26.5
0
183
0
183
17.1
(INR b)
2022E
21
778
799
860
713
252
460
131
487
248
176
0
63
219
268
860
2015
6
542
548
550
164
67
129
63
472
126
312
0
34
114
358
550
2016
11
606
618
622
175
79
153
84
517
144
328
0
46
132
385
622
2017
11
678
690
693
258
96
161
135
537
160
326
0
51
140
397
693
2018
11
638
649
658
261
115
146
153
500
174
262
0
64
141
359
658
2019
22
628
650
661
311
135
176
143
529
202
262
0
65
186
342
661
2020
21
637
658
719
414
164
251
131
546
256
233
0
57
209
337
719
2021E
21
694
715
776
549
201
347
131
495
223
214
0
57
197
297
776
20 April 2020
8
 Motilal Oswal Financial Services
Infosys
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout % (excl.div.tax, inc. buyback)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
Cash Flow Statement
Y/E March
CF from Operations
Cash for Working Capital
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Proceeds from Equity
Others
Dividend Payments
Cash Flow from Fin.
Net Cash Flow
Opening Cash Bal.
Add: Net Cash
Closing Cash Bal.
2015
53.9
58.6
239.6
22.3
41.2
12.1
11.1
10.0
2.8
2.7
3.4
24.1
19.2
86
4.1
2016
29.5
32.7
135.1
24.3
82.2
22.1
19.9
17.4
4.8
4.8
3.7
23.2
19.2
84
4.1
2017
31.5
35.2
150.9
25.8
81.9
20.7
18.5
16.0
4.3
4.3
4.0
22.0
18.5
85
4.2
2018
35.7
39.3
142.0
43.5
122.0
18.3
16.6
15.7
4.2
4.6
6.7
24.0
20.1
90
4.8
2019
37.1
41.3
142.2
21.5
58.0
17.6
15.8
14.2
3.6
4.6
3.3
23.7
21.2
89
4.7
2020
39.0
42.9
144.7
17.5
44.8
16.7
15.2
13.3
3.3
4.5
2.7
25.3
20.4
103
3.6
2021E
36.8
45.7
168.7
20.0
54.4
17.7
14.3
12.2
3.0
3.9
3.1
21.8
17.9
89
2.6
2022E
43.1
55.1
188.5
20.0
46.4
15.1
11.8
10.0
2.7
3.5
3.1
22.9
19.3
89
2.2
(INR b)
2022E
290
-9
215
-164
51
0
-164
0
0
-99
-99
-48
214
-48
176
2015
7,624
1,680
9,237
11
9,248
786
797
0
-13
-50
-63
9,971
290
9,971
312
2016
204
-23
122
-27
95
4
-31
0
-17
-70
-86
5
312
5
328
2017
217
-19
141
-21
119
-63
-48
0
-2
-69
-71
22
328
22
326
2018
236
-26
168
-3
164
1
-21
0
26
-227
-202
-55
326
-55
262
2019
230
16
191
-50
141
0
-40
0
-41
-112
-153
-3
262
-3
262
2020
252
-24
174
-104
71
0
-92
0
-69
-89
-158
-76
262
-76
233
2021E
250
21
215
-134
81
0
-134
0
0
-99
-99
-19
233
-19
214
20 April 2020
9
 Motilal Oswal Financial Services
Infosys
NOTES
20 April 2020
10
 Motilal Oswal Financial Services
Infosys
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a ca pital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
20 April 2020
11
 Motilal Oswal Financial Services
Infosys
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
20 April 2020
12