Infosys ADR (INFY) - 58.84% Below 52-Week High: Buy or Wait?

Stock Details

Infosys Ltd ADR (INFY), a prominent company in the technology sector within the information technology services industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $12.09. Over the past 52 weeks, it has ranged between $10.34 and $29.37. This places the current price at 41.2% of its 52-week high and 16.9% above its 52-week low. Recent trading volume was recorded at 9,783,425. The 14-day Relative Strength Index (RSI) stands at 46.46, suggesting neutral conditions. The stock is currently trading below its 50-day moving average of $18.26 by 33.79%. Similarly, it is below its 200-day moving average of $19.98 by 39.49%. The MACD histogram is -0.06, indicating bearish momentum (MACD Line: 0.01, Signal Line: 0.07).

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

14.36

Below market average

Forward P/E

14.03

Earnings expected to grow

PEG Ratio

2.03

Potentially overvalued

Price to Book

4.77

EV/EBITDA

8.55

EPS (TTM)

$0.80

Price to Sales

2.31

Beta

0.13

Less volatile than market

Q:How is INFY valued relative to its earnings and growth?

Infosys Ltd ADR trades at a P/E ratio of 14.36, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 14.03 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.03 indicates a premium valuation even accounting for growth.

Q:What is INFY's risk profile compared to the market?

With a beta of 0.13, Infosys Ltd ADR is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.77 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

16.40%

Operating Margin

20.90%

EBITDA

$4.43B

Return on Equity

31.40%

Return on Assets

15.10%

Revenue Growth (YoY)

6.60%

Earnings Growth (YoY)

11.80%

Q:How profitable and efficient is INFY's business model?

Infosys Ltd ADR achieves a profit margin of 16.40%, meaning it retains $16.40 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 20.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 31.40% and ROA at 15.10%, the company generates strong returns on invested capital.

Q:What are INFY's recent growth trends?

Infosys Ltd ADR's revenue grew by 6.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 11.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against INFORMATION TECHNOLOGY SERVICES industry averages for proper context.

Dividend Information

Dividend Per Share

$0.52

Dividend Yield

4.56%

Ex-Dividend Date

Jun 10, 2026

Dividend Date

Jun 29, 2026

Q:What dividend income can investors expect from INFY?

Infosys Ltd ADR offers a dividend yield of 4.56%, paying $0.52 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Jun 10, 2026.

Q:How reliable is INFY's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Infosys Ltd ADR pays $0.52 per share in dividends against earnings of $0.80 per share, resulting in a payout ratio of 65.00%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Jun 29, 2026.

Company Size & Market

Market Cap

$46.5B

Revenue (TTM)

$20.16B

Revenue/Share (TTM)

$2.45

Shares Outstanding

4.05B

Book Value/Share

$1.21

Asset Type

Common Stock

Q:What is INFY's market capitalization and position?

Infosys Ltd ADR has a market capitalization of $46.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 4.05B shares outstanding, the company's ownership is widely distributed. As a participant in the INFORMATION TECHNOLOGY SERVICES industry, it competes with other firms in this sector.

Q:How does INFY's price compare to its book value?

Infosys Ltd ADR's book value per share is $1.21, while the current stock price is $12.09, resulting in a price-to-book (P/B) ratio of 10.00. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$13.27

9.76% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for INFY?

13 analysts cover INFY with 38% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $13.27 implies 9.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on INFY?

Current analyst recommendations:3 Strong Buy, 2 Buy, 8 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 19, 2026, 02:47 AM

Technical Indicators

RSI (14-day)

46.46

Neutral

50-Day Moving Average

$18.26

-33.79% below MA-50

200-Day Moving Average

$19.98

-39.49% below MA-200

MACD Line

0.01

MACD Signal

0.07

MACD Histogram

-0.06

Bearish

Q:What does INFY's RSI value tell investors?

The RSI (Relative Strength Index) for INFY is currently 46.46, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this confirms bearish conditions.

Q:How should traders interpret INFY's MACD and moving average crossovers?

MACD analysis shows the MACD line at 0.01 below the signal line at 0.07, with histogram at -0.06. This bearish crossover indicates downward pressure. The narrow histogram suggests a potential trend change ahead. The 50-day MA ($18.26) is below the 200-day MA ($19.98), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Jul 21, 2025, 12:30 AM

Infosys Ltd ADR (INFY) Stock