INFY vs TECHM
Side-by-side comparison of Infosys Ltd. and Tech Mahindra Ltd.. Descriptive only — not investment advice.
Infosys Ltd.
IT
Quality Score: 63/100
Tech Mahindra Ltd.
IT
Quality Score: 54/100
At a glance
| Metric | INFY | TECHM |
|---|---|---|
| Quality Score | 63/100 | 54/100 |
| P/E (trailing) | 15.6 | 27.0 |
| Forward P/E | 14.4 | 17.1 |
| ROE | +31.4% | +16.6% |
| Profit margin | +16.4% | +8.5% |
| Debt-to-equity | 9.83 | 7.27 |
| Dividend yield | +4.24% | +3.49% |
| 1Y price return | -19.7% | +0.6% |
| From 52w high | -31.8% | -21.1% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.90 | 2.25 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Infosys (INFY) trades at ₹1,179.20, down 19.68% over 12 months and 23.22% over 3 months, sitting 19% below its 200-DMA of ₹1,456. The stock holds the highest quality score (60) and second-highest ROE (31.44%) among six tracked IT peers, while trading at a trailing PE of 15.6 and forward PE of 14.4 — the lowest valuation multiple in the peer group.
Tech Mahindra (TECHM) trades at ₹1,463, fractionally below its 200-DMA (₹1,492.97), having returned 0.61% over the past 12 months against a 21.09% drawdown from its 52-week high. The company reported Q4 FY26 net profit up 16% YoY and declared its highest-ever annual dividend, yet the stock slipped on results day as brokerages diverged on valuation — with a trailing PE of 27 that is the highest in its six-peer IT group while ROE of 16.61% is the lowest.
Pros
- ✓ROE of 31.44% is second only to TCS (48.4%) among six IT peers, and has remained above 15% for 4 of 5 available years, indicating persistent capital efficiency.
- ✓Quality score of 60 ranks first in a peer group ranging from 40 to 59, reflecting the composite strength of profitability and balance-sheet metrics relative to IT comparables.
- ✓Trailing PE of 15.6 and forward PE of 14.4 are the lowest in the six-stock peer set (next lowest: WIPRO at 15.74), representing the sector's tightest valuation by earnings multiple.
- ✓Dividend yield of 4.24% and 5-year earnings CAGR of 10.2% provide income context alongside growth; FCF was positive in 4 of 5 available years.
- ✓Revenue and earnings 5-year CAGRs of 12.6% and 15.9% respectively show consistent top-line and bottom-line expansion over a multi-year horizon.
- ✓FCF was positive in 4 of 5 available years, and debt trend is classified as falling — indicating improving balance-sheet trajectory even if current leverage remains elevated.
- ✓Dividend yield of 3.49% is material for a large-cap IT name; the Q4 FY26 declaration was the highest annual dividend in company history.
- ✓Forward PE of 17.11 represents a 36.6% compression from the trailing PE of 26.99, reflecting consensus expectations of meaningful earnings expansion in FY27.
Cons
- ✗Price is 19.0% below the 200-DMA (₹1,456) and 18.9% below the 50-DMA (₹1,261), with the 3-month decline of 23.22% accelerating versus the 12-month decline of 19.68%.
- ✗52-week drawdown of 31.76% from peak is among the sharpest declines in the IT large-cap space, with no near-term technical resistance until ₹1,377 — 16.8% above current price.
- ✗BMO Capital cut its price target following what it described as a weaker close to FY26, adding a near-term fundamental headwind to the technical pressure.
- ✗D/E of 9.83 is elevated for an IT-sector company; while FCF has been positive 4 of 5 years and debt trend is flat, the absolute leverage level warrants monitoring against revenue growth of 6.6% over 5 years.
- ✗D/E of 7.27 is an outlier for IT services, where peers such as TCS and Infosys carry near-zero financial leverage; this level of debt amplifies downside risk if revenue growth decelerates.
- ✗ROE of 16.61% is the lowest among the six peers benchmarked, trailing INFY (31.44%), TCS (48.4%), HCLTECH (23.36%), and LTM (21.29%), and sits above 15% in only 3 of available historical years.
- ✗Trailing PE of 26.99 is the highest in the peer set (range 15.6–25.8), meaning TECHM commands a valuation premium despite ranking last on quality score (46 vs sector leader INFY at 60).
- ✗Price is below the 200-DMA and has returned under 1% over 12 months, with a 3-month decline of 11.08% and a 21% drawdown from the 52-week high — reflecting sustained selling pressure over an extended period.
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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.