INFY vs TECHM
Side-by-side comparison of Infosys Ltd. and Tech Mahindra Ltd.. Descriptive only — not investment advice.
Infosys Ltd.
IT
Quality Score: 58/100
Tech Mahindra Ltd.
IT
Quality Score: 50/100
At a glance
| Metric | INFY | TECHM |
|---|---|---|
| Quality Score | 58/100 | 50/100 |
| P/E (trailing) | 13.9 | 27.4 |
| Forward P/E | 12.8 | 17.4 |
| ROE | +31.4% | +16.6% |
| Profit margin | +16.4% | +8.5% |
| Debt-to-equity | 9.83 | 7.27 |
| Dividend yield | +4.76% | +3.44% |
| 1Y price return | -33.5% | -1.1% |
| From 52w high | -37.8% | -20.0% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.90 | — |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Infosys (INFY) trades at ₹1,051.4 as of June 22 2026, down 33.5% over 12 months and 37.84% from its 52-week high, with the price sitting 9.8% below its 50-DMA and 23.8% below its 200-DMA. The company carries a PE of 13.89 — the lowest among the 6 tracked IT peers — alongside a 5-year earnings growth rate of 11.8% and ROE of 31.44%, which ranks 2nd in the peer group. Two consecutive single-day declines of approximately 9.74% on June 20 and June 21 mark a sharp acceleration of the broader downtrend.
Tech Mahindra (TECHM) trades at ₹1,483.5, roughly flat over 12 months (-1.1%) and 20% below its 52-week high. The stock sits just below its 200-DMA at ₹1,490, while posting an 11.3% gain over three months. Among six large-cap IT peers, TECHM ranks fifth on ROE (16.61%) and carries a D/E of 7.27 — the highest in the group — alongside a trailing PE of 27.4 that is above every comparable peer.
Pros
- ✓ROE of 31.44% ranks 2nd among 6 tracked IT peers (HCLTECH 23.36%, WIPRO 15.44%, TECHM 16.61%, LTM 21.29%); TCS at 48.4% is the only peer ahead.
- ✓PE of 13.89 is the lowest in the tracked peer group (next lowest: WIPRO at 14.36, TCS at 15.71); forward PE of 12.84 implies the multiple has contracted further on forward estimates.
- ✓5-year earnings growth of 11.8% outpaces 5-year revenue growth of 6.6%, suggesting margin expansion or mix-shift contribution over the period.
- ✓Quality score of 65 ties for 1st place among 6 IT peers (LTM also 65; TCS 62; others 40–49), and the company secured a new contract with Norway-based DNB Bank for financial crime operations modernisation as recently as June 7.
- ✓Revenue has grown at a 5-year CAGR of 12.6% and earnings at 15.9%, suggesting the core business has expanded meaningfully over the medium term.
- ✓Debt trend is classified as falling, and FCF was positive in 4 of the available years, indicating some capacity to generate cash even during a period of elevated balance-sheet leverage.
- ✓Dividend yield of 3.44% is among the higher yields in the large-cap IT space, providing a return component independent of price appreciation.
- ✓Forward PE of 17.4 represents a 36% discount to the trailing PE of 27.4, indicating the analyst community embeds material earnings growth in near-term estimates for the stock.
Cons
- ✗Price has declined 33.5% over 12 months and 12.01% over 3 months; the stock has not traded above its 200-DMA (₹1,380.29) and is 23.8% below it, reflecting a sustained multi-month downtrend. Two additional single-day drops of ~9.74% each on June 20 and June 21 accelerated the drawdown to 37.84% from the 52-week high.
- ✗D/E ratio of 9.83 stands materially above what is typical for large-cap asset-light IT businesses; elevated leverage constrains financial flexibility relative to less-leveraged peers.
- ✗Revenue growth of 6.6% over 5 years is at the lower end of IT-sector norms; persistence consistency score of 53 (out of 100) and FCF-positive in only 4 of the tracked years limit confidence in the durability of the headline ROE figure.
- ✗CFO sold 5,191 shares on May 28, and a third-party analyst note cut the 12-month price target to ₹1,455.74; insider disposal and target reductions are incremental negative signals even if individually modest.
- ✗D/E of 7.27 is the highest in the peer group by a wide margin; for an IT-services business where peers carry D/E well below 1.0, this level of leverage is a structural outlier and warrants scrutiny of the underlying debt composition.
- ✗ROE of 16.61% is fifth among six peers; TCS (48.4%), INFY (31.44%), and HCLTECH (23.36%) all generate substantially higher returns on equity, indicating a meaningful gap in capital efficiency.
- ✗Trailing PE of 27.4 is above all six peers despite the below-median ROE and quality score of 46 (fourth of six), creating a premium-valuation / below-median-quality combination.
- ✗The stock has spent extended time below its 200-DMA; the 52-week drawdown is -20.0% and the 12-month price return is -1.1%, underperforming several peers in absolute terms.
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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.