barclays-infosys ltd. - the next three years.pdf

7/28/2019 Barclays-Infosys Ltd. - The next three years.pdf

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Equity ResearcTechnology | Asia Ex-Japan Software &

Servic25 June 20

Infosys Ltd.

The next three yearsConcluding our recent series of deep dive notes on Infosys, we interacted withCEO Mr Shibulal to understand the companys next three-year trajectory. Whileaccepting there were some issues with the company strategy, managementhighlighted recent changes led by: 1) an increased aggression in pursuit of revenues; 2) willingness to take short-term margin setbacks to drive growth; and 3)a bolstering of management ranks. Results of the changing strategy are visible with2x contract wins in 2H13 compared to 1H13, although margins could take a hit(some contracts have single-digit margins in Year 1). While near-term earningsvisibility remains low, we believe low expectations & reasonable valuations providean opportunity to accumulate. Maintain Overweight with a price target of Rs2,750.

Better execution is resulting in stronger project wins: Management highlighted it isfollowing a two-pronged approach to revive growth: 1) increase client relevancethrough its run-transform-innovate strategy, with increased responsibilities for each of the industry verticals, including freedom to decide pricing of contracts; and 2) creatingbalanced growth across service offerings (Business & IT Services, Consulting & SystemIntegration, and Products, Platforms & Solutions). A flexible pricing strategy is nowbeing adopted and the company expects growth in the core business (BITS) will bedriven by offering a portfolio of service lines to customers. This renewed focus is visiblethrough US$1.5bn of project wins in FY13 (US$0.5bn in 1H, US$1bn in 2H). Growthguidance for FY13 of 6-10% US$ revenue growth is safe, according to management.

What is the new margin norm? According to management, Year 1 margins of the fewlarge deals signed by Infosys could be as low as 8%. However, this may improve to 15-20% in Year 2/3 with overall project margins similar to core business margins in thelonger term. With an improvement in growth, other levers like improved utilisation,improved employee pyramid, and better offshore-onsite mix should help margins.

CEO succession will be well planned: Management highlighted that any CEO decisionis dependent upon the Board of Directors and Nomination Committee. Infosys currentlyhas a strong cadre of leaders who it believes can easily step up for this role. However,the chances of an outside CEO have not been ruled out at the present stage.

INFY.NS: Financial and Valuation Metrics INR

FY Mar 2012 2013 2014 2015 2016

EPS 145.55A 164.88A 173.87E 202.37E 229.92E

Previous EPS 145.55A 164.88A 173.87E 202.37E 229.92E

P/E 16.6 14.7 13.9 12.0 10.5Source: Barclays Research.

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies coveredin its research reports. As a result, investors should be aware that the firm may have a conflict of interestthat could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment decision.This research report has been prepared in whole or in part by equity research analysts based outside theUS who are not registered/qualified as research analysts with FINRA.PLEASE SEE ANALYST(S) CERTIFICATION(S) AND IMPORTANT DISCLOSURES BEGINNING ON PAGE 11.

Stock Rating OVERWEIGUnchange

Industry View NEUTRUnchange

Price Target INR 2750.Unchange

Price (21-Jun-2013) INR 2419.1Potential Upside/Downside +14%Tickers INFO IN / INFY Market Cap (INR mn) 138916Shares Outstanding (mn) 574.24Free Float (%) 83.7

52 Wk Avg Daily Volume (mn) 0.Dividend Yield (%) 1Return on Equity TTM (%) 27.2Current BVPS (INR) 655.Source: FactSet Fundamentals

Price Performance Exchange-BS52 Week range INR 3010.00-2101.6

Link to Barclays Live for interactive charting

Asia Ex-Japan Software & IT ServicesBhuvnesh Singh+91 22 6719 [email protected], Mumbai

Hitesh Das+91 22 6719 6213

[email protected], Mumbai


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Barclays | Infosys Ltd.

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Asia Ex-Japan Software & IT Services Industry View: NEUTRAL

Infosys Limited (INFY.NS) Stock Rating: OVERWEIGHT

Income statement (INRmn) 2013A 2014E 2015E 2016E CAGR Price (21-Jun-2013) INR 2,419.15Price Target INR 2,750.00Why Overweight? Our 12-month price target is basedon c16x of FY14E EPS, which is based on the trading

average since Nov-08. The revival of pricing, steadyvolume growth and recent large deal wins supportour overweight stance.

Upside case INR 3,150.00A strong rebound in discretionary IT spending couldlead to more positive revenue and margin scenarios.This would drive multiples to 18x and hence the stockcould trade close to Rs3,150.

Downside case INR 2,000.00A significantly weaker macro scenario or a significantdecline in the market could lead to both EPSdowngrades (down 10%) and multiple compression(to 13x) for a share price of Rs2,000.

Upside/Downside scenarios

POINT Quantitative Equity Scores

Source: POINT. The scores are valid as of the date of thisreport and are independent of the fundamental analysts'views. To view the latest scores, click here.

Revenue 403,520 434,936 470,070 512,307 8.3%EBITDA 115,346 121,612 139,215 154,666 10.3%EBIT 104,290 108,419 125,062 139,553 10.2%

Pre-tax income 127,880 132,495 154,269 175,329 11.1%Net income 94,210 99,372 115,702 131,496 11.8%EPS (reported) (INR) 164.88 173.87 202.37 229.92 11.7%Diluted shares (mn) 571.4 571.5 571.7 571.9 0.0%DPS (INR) 42.00 52.16 60.71 68.98 18.0%

Margin and return data AverageEBITDA margin (%) 28.6 28.0 29.6 30.2 29.1EBIT margin (%) 25.8 24.9 26.6 27.2 26.2Pre-tax margin (%) 31.7 30.5 32.8 34.2 32.3Net margin (%) 23.3 22.8 24.6 25.7 24.1ROIC (%) 43.5 39.8 42.5 44.7 42.6ROA (%) 22.2 20.0 20.3 20.1 20.7ROE (%) 25.7 23.1 23.1 22.7 23.7

Balance sheet and cash flow (INRmn) CAGRFixed assets 88,120 86,927 84,774 81,661 -2.5%Cash and equivalents 240,660 290,838 352,219 430,787 21.4%Total assets 463,510 529,131 609,328 701,285 14.8%Total current liabilities 62,860 63,989 69,095 75,711 6.4%Long-term liabilities 2,680 2,680 2,680 2,680 0.0%Total liabilities 463,510 529,131 609,328 701,285 14.8%Net debt/(funds) -200,308 -247,345 -305,211 -379,556 N/AShareholders' equity 397,970 462,462 537,553 622,894 16.1%Change in working capital -8,110 -14,203 -14,297 -7,857 N/ACash flow from operations 97,156 98,362 115,557 138,753 12.6%Capital expenditure -33,426 -12,000 -12,000 -12,000 N/AFree cash flow 63,730 86,362 103,557 126,753 25.8%

Valuation and leverage metrics AverageP/E (reported) (x) 14.7 13.9 12.0 10.5 12.8EV/EBITDA (x) 10.2 9.3 7.7 6.5 8.4Equity FCF yield (%) 4.6 6.2 7.5 9.2 6.9EV/sales (x) 2.9 2.6 2.3 2.0 2.4P/BV (x) 3.5 3.0 2.6 2.2 2.8Dividend yield (%) 1.7 2.2 2.5 2.9 2.3Total debt/capital (%) 0.0 0.0 0.0 0.0 0.0Net debt/EBITDA (x) -1.7 -2.0 -2.2 -2.5 -2.1

Selected operating metricsTotal headcount 149,994 161,672 174,732 190,432Volume growth (%) 8.8 8.4 7.3 8.5

Pricing growth (%) -3.5 -1.1 0.1 0.0Onsite as % of revenues 50.0 55.2 55.1 55.1

Source: Company data, Barclays ResearchNote: FY End Mar

Value

Quality

Sentiment

Low High


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Renewed focus on large dealsInfosys CEO Mr Shibulal outlined that going forward the only primary strategy for thecompany is to revive growth by winning large outsourcing deals. There are two underlyingpillars to this approach:

1) Increasing client relevance : This approach includes creation of new avenues toincrease Infosys relevance to clients, which it believes will eventually lead to highermarket share and better revenue realisation. Under this approach, industry verticalswere reorganised in 2011 in order to respond to client needs effectively. Managementnoted that this strategy has been successful with the new structure enabling Infosys towork with clients seamlessly at a global level, thereby adding greater value.

FIGURE 1Infosys: Creation of four integrated verticals

* Includes healthcare and life sciences. Note: tentative alignment shown, as per our viewSource: Company data, Barclays Research

Significant strategy changes are now behind the company with managementcompleting the implementation of the run-transform-innovate strategy in Q2FY13. Thisstrategic shift marked the creation of three major service offerings from Infosys:

Run: Helping clients run their business in a cost efficient manner; mostly comesunder the traditional IT services domain (c62% of Infosys revenues);

Transform : Help customers who want to change/transform their business; mostlyled by consulting and package implementation domain (c32% of revenues);

Innovation : Focus on IP led products and platforms; (c6% of revenues).

Management noted that creation of these verticals (BFSI, Manufacturing, RCL and ECS)have increased organisational agility in responding to customer needs and since eachunit now operates as a mini Infosys, they can take independent pricing decisions.However, these units can take on limited liabilities.

Insurance,Banking, Financial

Manufacturing

RCL*

ECS

Insurance,Banking, Financial

Serv .

Manufacturing

Retail

Telecom

Utilities

Transportation &Logistics

Services

Others

Recent Infosys Reports: 1.Revisiting 4Cs ; 2. Issues in riskmanagement ; 3. Operationallyleveraged


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Management also highlighted that the new structure has enabled efficient execution of the Harley-Davidson deal, which is a multi-tower deal involving Infrastructure Servicesand Application Development and Management (ADM). Due to the new structure, adevelopment centre was functional within 45 days and customer assets have alreadybeen taken over.

FIGURE 2Infosys: Harley-Davidson Deal

Infosys To Expand Its U.S. Operations With A New Delivery Centre InWisconsinInfosys , a global leader in consulting and technology, today announced that it willexpand its presence in the United States with a new delivery centre in Milwaukee,Wisconsin. The facility will provide end-to-end technology, consulting and systemsintegration services, and also will house a training centre.

Infosys is investing in the Midwest region of the United States to support its clients inthe area, including Harley-Davidson. The initiation of a five-year engagement with theworlds leading American motorcycle manufacturer was the catalyst for locating thenew delivery centre in Milwaukee. Harley-Davidsons contract with Infosys provides arange of technology services including applications management, infrastructuresupport and hosting services. As part of this long-term partnership, Infosys also willestablish a training centre to facilitate knowledge reuse and to conduct educationrelated to information technology operations and business processes.

Source: Company press release (23 July 2012)

2) Create balanced growth : While growth in Consulting and System Integration was ledby inorganic growth (Lodestone acquisition), growth in the core business has beenlagging (Business and IT Services (BITS), c62% of revenues), as per management. Todrive growth in this business line, management is now looking to adopt the portfolioapproach by combining service lines (such as ADM and Infrastructure Services), withportfolio level pricing also being looked at. Note that in his AGM speech in June 2013,Infosys Executive Chairman Mr. Narayana Murthy also underlined this strategy bystating that a flexible pricing policy will be adopted to enhance growth rates.

FIGURE 3Infosys Refocus on large revenue yielding outsourcing projects

Infosys AGM 2013 Excerpt from Mr. Narayana Murthys SpeechDuring the last two years, our focus on the third stream (applications softwaredevelopment, maintenance, testing business process management and infrastructure

management) was blurred, we have to therefore refocus on this stream, which is ourbread and butter business in the short term, while also ensuring that we accelerate ourprogress on the first two streams (consulting and selling intellectual property-basedsolutions) in the medium to long term.

. We will adopt a flexible pricing policy, where absolutely necessary, to enhance ourgrowth rate.

Source: Company press release 15 June 2013

Management further noted that Infosys had won cUS$1.5bn of large deals in FY13(cUS$500mn in 1H and cUS$1bn in 2H), on the back of this portfolio based approach.


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FIGURE 4Infosys: Service Offerings

Source: Company data, Barclays Research

Traction in the Products, Platforms and Solutions (PPS) business remains on track, withmanagement further highlighting that positive feedback is being received from clients.

FIGURE 5Infosys: Revenue split along service offerings in FY13

FIGURE 6Infosys: Revenue split along industry verticals in FY13

Source: Company data, Barclays Research Source: Company data, Barclays Research

1.0 - Perfectingthe off-shore

model

2.0 - New servicelines in new

business sectors

3.0 - Focus ontransformationand innovation

ProductsPlatforms

Consulting

BITSRenewed focus to

drive growth incore business

Portfolio approcahof combiningservice lines

Investment insales force

BITS62%

Consultingand SystemIntegration

32%

PPS6%

BFSI34%

Manufac.22%

RCL20%

ECS24%


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FIGURE 7PPS No. of clients and percentage contribution to revenues

FIGURE 8Finacle: Deal wins remain stable

Source: Company data, Barclays Research Source: Company data, Barclays Research; Note: Finacle is a core bankingsoftware package developed by Infosys

Given that PPS is a sticky business, management intends to continue to makeinvestments in this service offering. We note, as mentioned in the 2012-13 AnnualReport, that management has set aside US$100mn to further this initiative. One of thekey challenges in PPS is that clients are sometime reluctant to shift to a new platformdue to legacy issues.

44

75

4.5%

5.0%

5.5%

6.0%

0

10

20

30

40

50

60

70

80

FY12 FY13

PPS -Clients PPS as % of total revenues -RHS

41

5248

0

10

20

30

40

50

60

FY11 FY12 FY13

Finacle - Deal Wins


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Growth > MarginManagement highlighted that focus on reviving growth is paramount at this juncture asmargin expansion will eventually follow growth in the long-term. It expects that higherrevenue growth would: 1) improve utilisations which are currently 800bps belowmanagements comfort zone and have impacted margins by c160bps; and 2) improveemployee pyramid (average age of employees) and on-site:off-shore mix.

FIGURE 9Infosys: Sluggish growth has impacted utilisations

FIGURE 10Infosys: employee pyramid has been deteriorating

Source: Company data, Barclays Research Source: Company data, Barclays Research estimates

Execution of the large deals (cUS$1.5bn) won in FY13 remains on-track and managementexpects c20% revenue accretion from these contracts in FY14. That said, margins in theselarge deals are initially lower (c8% in Year 1, c15-20% in Year 2 and 3, according to Infosys).However, management noted that average margins over the project lifetime will be closer toBITS segment margins.

FIGURE 11Infosys: Contract win rate in FY13

FIGURE 12Infosys: Margin trajectory in large deals


Management reasoned that large deals are margin dilutive in the beginning as the companytakes over people and assets, and off-shoring takes time. Apart from adopting pricing as aportfolio strategy, Infosys is willing to take over people and assets to win new deals,especially in the infrastructure services domain.

69% 68%

72%

69% 70%

74% 74%

79%

76%

73%

62%

64%

66%

68%

70%

72%

74%

76%

78%

80%

FY09 FY10 FY11 FY12 FY13

Utilisation

Inc. Trainees Exc. Trainees

0102030405060708090

100

FY08 FY09 FY10 FY11 FY12 FY13E

%

20-25 yrs 26-30 yrs Above 30

500

730

220

0

100

200

300

400

500

600

700

800

1HFY13 Q3FY13 Q4FY13

US$ mn

Large deals won

0%

5%

10%

15%

20%

25%

30%

35%

01020

30405060708090

100

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7

%US$

Revenue Profit

Avg. Project Margin


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Management commented that the win ratio in large deals improved in FY13, and that withthe FY14 pipeline looking a tad better than FY13, large deal wins could be strong in FY14.To bolster the win ratio, management has begun investing in its sales force, which wasechoed by Mr. Murthy in his AGM speech.

FIGURE 13Infosys Investing in sales development

We will make our sales force more effective by improving the quality of the salestalent and by providing them with incentives and every resource needed.

Infosys announced wage hikes for FY14, with offshore employees getting 8% hikeeffective 1 July & global sales force getting the same quantum effective from 1 May.

Source: Economic Times (15 June 2013)

Near-term margin pressures to remainManagement maintain that near-term challenges to margins remain as:

US$100mn of higher employee costs (on-site wage hike) taken in FY13 have yet tobe accounted for.

Payment for the Lodestone acquisition and impact of its lower margins will alsolower operating profit by US$70mn (US$30mn acquisition charge and US$40mn of margin impact). Management also noted that since Lodestone revenues areprimarily onsite (US$200mn), an additional US$800mn of downstream revenues willbe required to neutralised the lower offshore mix impact.

Investments in PPS will impact margins.

FIGURE 14Infosys: Margin pressures and levers

Source: Company data, Barclays Research estimates

Moreover, Infosys announced wage hikes for its employees last week, with average wagehike for offshore employees of c8% and for on-site employees of c3% (not covered in theFebruary-2013 cycle) effective 1 July 2013. The global sales force also received a c8% hikeeffective 1 May 2013.


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FIGURE 15Infosys: Hiring was higher despite lower revenue growth

FIGURE 16Infosys: Sub-contracting costs rose sharply in FY12-13


Management admitted that it had miscalculated demand in FY11 on the basis of which itrecruited heavily in FY12. Further, it had not applied for adequate visas which increasedsub-contracting cost significantly in FY12. However, management notes that planningmodels are now in place and that it will focus more on just-in-time hiring and lower thedependence on campus hiring going forward.

0%

5%

10%

15%

20%

25%

30%

-5,000

10,00015,00020,00025,00030,00035,000

40,00045,00050,000

FY10 FY11 FY12 FY13

GrowthEmployees

Gross employee additions Revenue growth (US$)

6,500

9,470

12,600

19,670

0%

1%

2%

3%

4%

5%

6%

-

5,000

10,000

15,000

20,000

25,000

FY10 FY11 FY12 FY13

%US$ mn

Sub-contracting costs % Revenues


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CEO SuccessionManagement noted that any CEO succession decision will be dependent on the NominationCommittee and the Board of Directors. Infosys views it has a strong cadre of internal leaderswith three board members (from within the company) and 10 executive council members.However, management also noted that the probability of an outside hire has not yet beenruled out.

FIGURE 17Infosy CEO succession begins

Infosys hires head hunters for CEO searchInfosys has approached three global executive search firms - Heidrick & Struggles,Egon Zehnder and Russell Reynolds - to submit a capability document detailing theirCXO searches in the past. The plan appears to be to mandate one of them to search fora CEO to replace incumbent S D Shibulal when his tenure comes to an end in 2015.

The US$7.5bn IT company's engagement with executive search firms indicates thecompany's openness to consider external CEO candidates for the top job besides

benchmarking its own candidates to get greater visibility into the company's leadershiptalent pool.

V Balakrishnan, Infosys's India and BPO divisions head; Ashok Vemuri, head of Americas and global head of manufacturing; and B G Srinivas, head of Europe andBFSI, are widely believed to be in the reckoning for the top job.

Source: Times of India (12 June 2013)

Thoughts on Immigration BillOn the new US Immigration Bill, Infosys management noted it has been lobbying hard

against some of the provisions in collaboration with NASSCOM and USIBC (US IndiaBusiness Council). Based on the Senate version of the Bill, the Infosys CEO views the impactas three-fold:

FIGURE 18Infosys: CEO views on Immigration Bill

Type Clause Response

Usage Limits will be placed on the number of H-1B and L-1 workers an employer mayemploy. If the employer employs 50 ormore employees, the percentage of itsworkforce comprising H-1B workers maynot exceed 75% in 2015, 65% in 2016, and

50% after 2016.

Infosys is currently at 73:27 (27% localpopulation) which has to decline to 50:50in 2017. This transition can besmoothened out over next 3-4 years.

Costs Requires that H-1B dependent employerspay a minimum of a Level 2 wage;Increased visa costs.

Will discuss with clients to mitigate theimpact.

Outplacement A prohibition on the outplacement of foreign workers will be introduced.

Complex issue; local employee usage hasto improve from current levels.

Source: US Senate website, Company data, Barclays Research


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ANALYST(S) CERTIFICATION(S)

I, Bhuvnesh Singh, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of thesubject securities or issuers referred to in this research report and (2) no part of my compensation was, is or will be directly or indirectly related tothe specific recommendations or views expressed in this research report.

The POINT Quantitative Equity Scores (POINT Scores) referenced herein are produced by the firms POINT quantitative model and Barclayshereby certifies that (1) the views expressed in this research report accurately reflect the firm's POINT Scores model and (2) no part of the firm's

compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.

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Barclays Research is a part of the Corporate and Investment Banking division of Barclays Bank PLC and its affiliates (collectively and eachindividually, "Barclays"). For current important disclosures regarding companies that are the subject of this research report, please send a writtenrequest to: Barclays Research Compliance, 745 Seventh Avenue, 17th Floor, New York, NY 10019 or refer to http://publicresearch.barclays.comor call 212-526-1072.

The analysts responsible for preparing this research report have received compensation based upon various factors including the firm's totalrevenues, a portion of which is generated by investment banking activities.

Research analysts employed outside the US by affiliates of Barclays Capital Inc. are not registered/qualified as research analysts with FINRA.These analysts may not be associated persons of the member firm and therefore may not be subject to NASD Rule 2711 and incorporated NYSERule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analysts account.

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Primary Stocks (Ticker, Date, Price)

Infosys Ltd. (INFY.NS, 21-Jun-2013, INR 2419.15), Overweight/Neutral, C/D/J/L

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Below is the list of companies that constitute the "industry coverage universe":

Asia Ex-Japan Software & IT Services

HCL Technologies (HCLT.NS) Infosys Ltd. (INFY.NS) MindTree (MINT.NS)

Mphasis (MBFL.NS) Tata Consultancy Services (TCS.NS) Wipro Limited (WIPR.NS)

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A high/low Quality score indicates financial statement strength/weakness. Measures of quality include ROIC and corporate default probability.

A high/low Sentiment score indicates bullish/bearish market sentiment. Measures of sentiment include price momentum and earnings revisions.

These scores are valid as of the date of this report. To view the latest scores, which are updated monthly, click here .

For a more detailed description of the underlying methodology for each score, please click here .

Barclays offices involved in the production of equity research:London

Barclays Bank PLC (Barclays, London)

New York

Barclays Capital Inc. (BCI, New York)

Tokyo

Barclays Securities Japan Limited (BSJL, Tokyo)

So Paulo

Banco Barclays S.A. (BBSA, So Paulo)

Hong Kong

Barclays Bank PLC, Hong Kong branch (Barclays Bank, Hong Kong)

TorontoBarclays Capital Canada Inc. (BCCI, Toronto)

Johannesburg

Absa Capital, a division of Absa Bank Limited (Absa Capital, Johannesburg)

Mexico City

Barclays Bank Mexico, S.A. (BBMX, Mexico City)

Taiwan

Barclays Capital Securities Taiwan Limited (BCSTW, Taiwan)

Seoul

Barclays Capital Securities Limited (BCSL, Seoul)

Mumbai

Barclays Securities (India) Private Limited (BSIPL, Mumbai)Singapore

Barclays Bank PLC, Singapore branch (Barclays Bank, Singapore)


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25 June 2013 14


Infosys Ltd. (INFO IN / INFY.NS) Stock Rating Industry ViewINR 2419.15 (21-Jun-2013) OVERWEIGHT NEUTRAL

Rating and Price Target Chart - INR (as of 21-Jun-2013) Currency=INR

Date Closing Price Rating Price Target

15-Apr-2013 2333.95 2750.00

14-Jan-2013 2807.25 Overweight 3020.00

13-Jul-2012 2227.80 Equal Weight 2300.00

16-Apr-2012 2369.35 3010.00

04-Jan-2012 2854.25 3320.00

07-Oct-2011 2507.05 Overweight 3050.00

Link to Barclays Live for interactive charting

C: Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Infosys Ltd. or one of its affiliates.

D: Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from Infosys Ltd. in the past 12 months.

J: Barclays Bank PLC and/or an affiliate trades regularly in the securities of Infosys Ltd..

L: Infosys Ltd. is, or during the past 12 months has been, an investment banking client of Barclays Bank PLC and/or an affiliate.

Valuation Methodology: Our 12-month target price of INR2,750 for Infosys is based on a P/E of c16x, which we apply to our EPS estimate forFY14. Our target multiple for Infosys is based on average since Nov-08.

Risks which May Impede the Achievement of the Barclays Research Price Target: The downside risk to our price target is the failure in revival of growth due to weak macro and execution issues at the company. The upside risk to our target price is stronger than expected turnaround of themacro situation and revival in demand.

Closing Price Target Price Rating Change

Jul- 2010 Jan-2011 Jul- 2011 Jan-2012 Jul- 2012 Jan-2013 Jul-201

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

3,600


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barclays-infosys ltd. - the next three years.pdf

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