GEPL Capital's report on InfosysTechno-Funda Recommendation: InfosysInfosys (Infy) is India’s second largest IT service providing company. Infy has strong clientele across the vertical. The company recently has also won 6 large deals, 3 off which more than $100 mn also Infosys also won few more large deals in the month of July. This allows a company to have strong growth in the longer term horizon. This also helps in strengthening the company. Raising IT spending from the clients will also make depreciating the currency will also impact positively to the company. The operating margins of the company will likely to improve in the upcoming period."Infy has very strong balance sheet which makes the company more robust. The company has maintained the debt free status from the beginning. Higher reserves and cash in hand help in maintain the Highest ROE and ROCE. Higher operating margins indicates the business efficiency Operating margins for FY 15 stood at 27.89%. Net profit margin also stood strong at 23.20% which is looking stronger as compared to peers. ROE for the period of FY15 stood at 25% and ROCE stood at 34.06% respectively. Currently Infy is trading at 10x multiple which looks cheap and attractive as compared to peers. We recommend BUY on the stock", says GEPL Capital research report.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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