INFY vs TCS
Side-by-side comparison of Infosys Ltd. and Tata Consultancy Services Ltd.. Descriptive only — not investment advice.
Infosys Ltd.
IT
Quality Score: 63/100
Tata Consultancy Services Ltd.
IT
Quality Score: 54/100
At a glance
| Metric | INFY | TCS |
|---|---|---|
| Quality Score | 63/100 | 54/100 |
| P/E (trailing) | 15.6 | 17.6 |
| Forward P/E | 14.4 | 14.5 |
| ROE | +31.4% | +48.4% |
| Profit margin | +16.4% | +18.4% |
| Debt-to-equity | 9.83 | 10.39 |
| Dividend yield | +4.24% | +5.18% |
| 1Y price return | -19.7% | -28.4% |
| From 52w high | -31.8% | -31.8% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.90 | 2.12 |
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.
TCS trades at ₹2,394.40, down 28.41% over 12 months and 31.77% below its 52-week high, with the price sitting 17.6% below the 200-DMA at the time of analysis. Against this technical backdrop, the company reports an ROE of 48.4% — highest among its 6 tracked IT peers — and a 5.18% dividend yield, though the dividend has been cut for a second consecutive year. An active governance investigation at the Nashik facility adds a reputational risk dimension not visible in the trailing financial metrics.
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.
- ✓ROE of 48.4% ranks 1st among 6 tracked IT sector peers (HCLTECH 23.36%, INFY 31.44%, TECHM 16.61%, WIPRO 15.49%, LTM 21.29%), and has been above 15% in 4 of the available historical years.
- ✓FCF has been positive in 4 of the available recorded years, with a consistency score of 59, indicating above-average earnings-to-cash conversion relative to the historical record.
- ✓Trailing dividend yield of 5.18% is notable for a large-cap IT name; forward PE of 14.47 compresses the valuation multiple further when projected earnings are used.
- ✓5-year earnings CAGR of 12.2% and revenue CAGR of 9.6% reflect sustained top- and bottom-line growth over a multi-year horizon despite current near-term headwinds.
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.
- ✗Price is 31.77% below the 52-week high and 17.6% below the 200-DMA (₹2,901.17), with losses of 28.41% over 12 months and 20.16% over 3 months — among the steepest drawdowns in the measured IT peer group.
- ✗Active governance risk: Nashik facility allegations led to an internal probe ordered by the Chairman and 7 SIT arrests as of April 2026, representing an ongoing legal and reputational exposure.
- ✗Dividend has been reduced for two consecutive years, with cash being redirected to AI infrastructure investment; payouts to parent Tata Sons have also declined, signalling a shift in capital allocation priorities.
- ✗Debt-to-equity of 10.39 is on a rising trend; while IT firms are not capital-intensive in the traditional sense, this trajectory alongside declining dividend capacity constrains financial flexibility.
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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.