Infosys Limited

“Infosys is a well-governed, cash-rich IT services business with sustained high returns on capital and near-zero financial risk, but its labor-arbitrage growth model has structurally decelerated to mid-single digits, its moats are narrowing as AI compresses the services volume they depend on, and it lacks a credible reinvestment flywheel to compound capital at scale. At ~14x forward earnings the stock is fairly priced — not a trap, not a bargain — and the 10-year base case return of 4–10% CAGR including dividends reflects a mature, cash-returning business, not a compounder. Capital is better allocated to higher-conviction opportunities.”