AI Sentiment: Very Bullish
Reason: The article provides a positive overview of Infosys, highlighting its strong growth over the years, its position as a global leader in digital services and consulting, and its robust financial performance despite the COVID-19 pandemic.
There is a remarkable story in the Indian financial markets. An equity investor, with a mere investment of INR 20,000 in the shares of Infosys in 1993, would have seen the value of this investment grow to INR 535 crore by 2020. This represents a nearly 27 lakh percent growth over 27 years, which is truly phenomenal. A potential reason for this extraordinary growth could be the rapid expansion of the IT sector in India during this period, which has driven massive gains for investors who focused on IT stocks.
Infosys was founded in 1981 by seven engineers in Pune, India, with an initial capital of just $250. It was incorporated as Infosys Consultants Private Limited in 1981, and became a public limited company in June 1992. By 1993, the company's shares were listed on stock exchanges in India. The company's IPO was undersubscribed but was bailed out by US-based Morgan Stanley, which picked up a 13% equity stake in the company.
Since then, Infosys has grown into a global leader in next-generation digital services and consulting. The company enables clients in 46 countries to navigate their digital transformation. With over three decades of experience in managing the systems and workings of global enterprises, Infosys expertly steers its clients through their digital journey. The company does this by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. The company also empowers the business with agile digital at scale to deliver unprecedented levels of performance and customer delight.
Despite the economic slowdown caused by the COVID-19 pandemic, Infosys reported consolidated net profit growth of 16.6% year-on-year and 7.3% quarter-on-quarter to INR 5,197 crore for the quarter ended December 2020. The company also raised its revenue and margin guidance for FY21 due to increased demand for its services from sectors such as high tech, life sciences, and financial services.
In conclusion, the story of Infosys is a testament to the power of long-term equity investment and the exponential growth potential of the IT sector in India. It serves as an inspirational story for investors, showcasing how patience and belief in a company's potential can yield unimaginable returns.