SECURITY ANALYSIS

ASSIGNMENT

SUBMITTED TO- SUBMITTED BY-

DR. KAPIL GUPTA JATIN

09BS0000950
Company information

Infosys Technologies Limited

Type Public BSE: 500209

NASDAQ: INFY
Founded July 2, 1981
Headquarter Bangalore, India Electronics City, Hosur Road
s
Key people N. R. Narayana Murthy (Chairman and Chief Mentor)
Nandan Nilekani (Co-Chairman)
Kris Gopalakrishnan (Chief Executive Officer and Managing Director)
S. D. Shibulal (Chief Operating Officer and Director)
Industry Software services
Products Finacle (a universal banking product)
Services Information technology consulting services and solutions
Revenue Rs. 21,693 crore ($4.66 billion) (FY 2008-09)
Net income ▲ Rs. 5,988 crore ($1.28 billion) (FY 2008-09)
Employees 104,850
Subsidiaries Infosys BPO
Infosys Consulting
Infosys Australia
Infosys China
Infosys Mexico
Infosys Sweden
Website www.infosys.com
COMPANY NAME: INFOSYS TECHNOLOGIES LTD

INDUSTRY: IT – SOFTWARE

LISTING: BSE, NSE, NASDAQ

INDICES: SENSEX, BSE 100, BSE 200, BSE 500, BSE IT, TECK, NIFTY, CNX
IT, CNX 500, CNX 100, CNX SERVICE

PERIOD OF ANALYSIS: 1ST APR, 2005 – 31ST MAR, 2010

Choosing the Index: The Index that is taken for analysis is ‘CNX IT’ because of
the following reasons:

 Weightage of the stock in Index

The stock has approximately 56.4158 % weightage in CNX IT

 Correlation among Stock & Index

Among other indexes, CNX IT has more correlation with the stock

CORRELATION
 
CNX 0.8857
IT 42
0.6293
NIFTY 55
BANK 0.4941
EX 5
BSE 0.6248
100 21
 BSE 0.6143
200 94
BSE 0.6041
500 18
SENSE 0.6587
X 71

Calculation of Beta, R2, ADJUSTED R2

ADJUSTED
PERIOD BETA R2
R2
1 APR, 05- 31 0.9541 0.7845388 0.7843643
MAR, 10 07 43 81
1 APR, 05 - 30 1.0107 0.7188280 0.7165786
SEP, 05 54 2 44
1 OCT, 05 - 31 0.9975 0.6705921 0.6678697
MAR, 06 88 34 55
1 APR, 06 - 30 0.9442 0.8116233 0.8101163
SEP, 06 64 32 19
1 OCT, 06 - 31 0.9270 0.7564996 0.7544705
MAR, 07 39 92 23
1 APR, 07 - 30 0.9980 0.7374512 0.7353339
SEP, 07 41 63 34
1 OCT, 07 - 31 1.0275 0.8178281 0.8163470
MAR, 08 95 21 49
1 APR, 08 - 30 1.0240 0.8176220 0.8161392
SEP, 08 99 37 89
1 OCT, 08 - 31 0.8333 0.7984013 0.7966634
MAR, 09 83 9 71
1 APR, 09 - 30 0.9649 0.7997826 0.7981279
SEP, 09 73 83 95
1 OCT, 09 - 31 0.9676 0.8148617 0.8133059
MAR, 10 66 68 84
 Annual General Meetings Dates

AGM/EGM
Announcement Purpose Date Book Closure Remarks
Date From To
13-04-2010 AGM 12-06-2010 29-05-2010 12-06-2010 300% Dividend
15-04-2009 AGM 20-06-2009 06-06-2009 20-06-2009 270% Dividend
15-04-2008 AGM 14-06-2008 31-05-2008 14-06-2008 545% Dividend (Final
Dividend 145% + Special
Dividend 400%)
13-04-2007 AGM 22-06-2007 08-06-2007 22-06-2007 130% Final Dividend
11-10-2006 EGM 07-11-2006 - - To seek approval for the
Secondary American
Depositary Share Offering
and expects the Offering to
be completed thereafter.
14-04-2006 AGM 10-06-2006 27-05-2006 10-06-2006 770% Dividend (Rs. 30/- for
Silver Jublee Special Dividend
and Rs 8.50/- for Final
Dividend)
14-04-2005 AGM 11-06-2005 03-06-2005 11-06-2005 Final dividend of Rs. 6.50 per
share (130% on an equity
share par value Rs. 5/-).
Dividends Declared on Following Dates

Announcement Effective Dividend DividendRemarks

Date Date Type (%)
13-04-10 26-05-10 Final 300.00-
22-09-09 15-10-09 Interim 200.00-
15-04-09 04-06-09 Final 270.00-
25-09-08 16-10-08 Interim 200.00-
15-04-08 29-05-08 Final 545.00(Final Dividend 145% + Special Dividend
400%)
26-09-07 18-10-07 Interim 120.00-
13-04-07 06-06-07 Final 130.00AGM
28-09-06 19-10-06 Interim 100.00-
14-04-06 25-05-06 Final 770.00Silver Jubilee special dividend of Rs. 30
per share (600% on par value of Rs. 5 per
share) & final dividend of Rs. 8.50/- per
share (170% on an equity share par value
Rs. 5/-).
23-09-05 17-10-05 Interim 130.00-
14-04-05 01-06-05 Final 130.00Final dividend of Rs. 6.50 per share
(130% on an equity share par value Rs.
5/-).
NEWS Analysis
2005

-Information Technology Boom

- Aspis Bank, one of the leading medium size retail and commercial
banks operating in Greece, signs up for Finacle universal banking
solution to power its core banking and treasury operations across 66
branches.

- The Shop Floor Control System developed by the Company and Arrow
Electronics, a global provider of electronic components and computer
products and services, has won the 2004 InfoWorld 100 award for being
one of the top 100 best IT projects of the year.

Inference: This lead to positive expectations regarding the stock as well as the
Sector and market prices of the stock started rising.

- On May 03, 2005 voluntarily furnished extensible Business Reporting

Language (XBRL) data to the United States Securities and Exchange
Commission (SEC) electronically in a 6-K exhibit.

-Infosys Technologies and B-Source on June 29, 2005, announces

partnership to provide `pay-as-you-transact' services, known as
Business Service Provisioning, to European banks in the private and
asset management sectors.

Inference: This Information resulted in a positive move in the Stock of the

Company and prices were rising continuously.
-Infosys Technologies and Microsoft Corp unveiled the Catalytic IT
concept centre at the Infosys campus in Bangalore on Nov 29.

- Infosys won the Global MAKE (Most Admired Knowledge Enterprises) award, for
the years 2003, 2004 and 2005, being the only Indian company to win this award
and is inducted into the Global Hall of Fame for the same.

- India's second largest exporter of software and services, Infosys Technologies

Ltd, has announced a strong set of results for

Inference: this also added to the reputation of the company and its prices were
continuously rising with little fluctuations into it.

2006

- Infosys & Microsoft Share Vision for Effective Enterprise

Information Management

- Croatian bank chooses Infosys for tech revamp

- Infosys Implements PeopleSoft Enterprise Applications at Nissan

North America

Inference: The overall effect on Infosys Share price was positive. In this year the
prices rose sharply from the level of 1500 in Jan - 06 to the level of 2450 in Dec
-06 with some variations due to other factors.

2007

- Infosys and Capgemini stock rises on merger reports

- Microsoft and Infosys expand relationship 26 November 2007 | By CBR Staff

Writer
Infosys Technologies, a provider of consulting and information technology
services, has announced several strategic efforts directed toward deepening
services delivered to Microsoft Corporation, including a new dedicated Vendor
Offshore Facility and a Microsoft Dynamics Concept Center.

- Infosys' profit soars 52% in Q3 11 January 2007 | By CBR Staff Writer

Infosys Technologies, India's second-largest IT services vendor, kicked off earnings
season with strong growth in its third fiscal quarter, although its forecasts
received a cool response from the market.

- Infosys to Open Development Center in Mexico, its First in Latin

America

- Nadra Bank selects Infosys Finacle 10 September 2007 | By CBR Staff Writer
Nadra Bank has selected India-based Infosys's Finacle Universal Banking Solution
for the bank's transformation initiative. The implementation will be based on the
Finacle bank-in-a-box approach to influence international best practices and
changing markets

- Infosys Receives the Highest Score in Strategy in Independent

Research Firm's Report on the Applications Outsourcing Market

Inference:
- Infosys shares fall as outlook disappoints 11 October 2007 | By CBR Staff Writer
Shares in Indian IT services vendor Infosys Technologies fell 7% after the
company's earnings forecast for the full year failed to meet expectations.

-Exchange Rate Variations- this added to the loss of return on Dollar-rupee and
hence the values of Beta as well as R2 fell as compared to the 1st half of 2006 and
2nd half of 2006

2008

-Infosys & Nihon Unisys sign MoU for Strategic Business Deployment &
Joint Development for Sales & Solution Service

- DSB Bank Partners with Finacle from Infosys for Core Banking-led
Transformation
- Fair Isaac teams with Infosys to leverage global delivery methodology 11
November 2008 | By CBR Staff Writer
Fair Isaac, a provider of analytics and decision management technology, is
teaming with Infosys Technologies, a provider of consulting and IT services, to
leverage its global delivery methodology and integration network.

-
Inference:

-Due to Global Recession the values of both BETA and R2 fell and hence the same
effect was visible on the market price of the share as well.

- the same effect was seen in 2nd half of 2008-09 as the values of BETA and R2 fell
due to the global fear of recession and markets slowly started recovering form the
recession phase and as a result market prices in next quarter started rising.

2009

- Infosys Technologies has bagged a five-year outsourcing and support

agreement from BP where Infosys will manage and operate a large
portion of business systems for BP under the terms of the agreement.

The company has announced successful implementation of its first IT

enabled end-to-end business transformation program for Thermax.

- From December 2008 till April 2009, Infosys has fired over 2500 employees on
account of bad performance. The company has been hit hard by lower revenue
from a crisis hit European and North American market. On Aril 15, 2009 Infosys
reported its first ever sequential fall in its revenue in a decade during the March
2009 quarter.

- In April 2009, Forbes rated Infosys among the 5 best performing companies in
the software and services sector in the world. In 2009, Infosys was considered one
of the Business Week's 50 Most Innovative Companies.
- Infosys eyes European firm; deal pegged at 300mn:
-V Balakrishnan, chief financial officer of Infosys, said: “The global currency
markets continue to be extremely volatile, even though we have seen some
stability in the rupee against the US dollar this quarter. We continue to focus on
high quality growth with superior margins. Our balance sheet has been further
strengthened with cash and cash equivalents reaching $2.8 billion.”

Inference:
The recovery from Global Recession helped company to gain its position again in
the market and it lead to increased value of both BETA and R2.

2010

-Infosys Technologies finds itself in a sweet spot as recovery hopes take hold, with
customers showing a new urgency to outsource operations, its Chief Executive
said on 27TH JAN.

-Aircel, Infosys team up to launch Mobile Application Store 04 January 2010 | By

CBR Staff Writer
Claims to provide broad selection of relevant applications

-Infosys Offers Finacle Solutions For East African Banks 28 March 2010 | By CBR
Staff Writer
Infosys Technologies, a global provider of IT services, has offered Finacle 10 and
Finacle Financial Inclusion solution for banking transformation and power
innovation for banks in East Africa.

-Finacle Joins Fincad Alliance Program 10 February 2010 | By CBR Staff Writer
Infosys Technologies, a global IT provider, revealed that its treasury solution
Finacle, has joined the Fincad Alliance Program, enabling it to access Fincad’s
derivatives analytics library for Finacle.
-Infosys Offers Finacle Solutions For East African Banks 28 March 2010 | By CBR
Staff Writer
Infosys Technologies, a global provider of IT services, has offered Finacle 10 and
Finacle Financial Inclusion solution for banking transformation and power
innovation for banks in East Africa.

Inference: This positive outlook from market has resulted in a increased value of
both BETA and R2. This is also reflected by the increase in the value of market
price of the share.