INFY - Infosys Limited Overview

Recent Trends:

• Short shares down -8.1% over 1 week
• Short shares up +4.7% over 1 month
• CTB surged +42% in 1 week, +223% in 1 month
• Utilization stuck at 100% for weeks

The combination of 100% utilization and rapidly rising borrowing costs suggests an increasingly crowded short trade. Shorts are paying over 21% annually to maintain positions, which is expensive and unsustainable long-term.

Options Sentiment

Put/Call Ratio: 3.45 (as of April 21)

This is extremely elevated - more than 3 puts traded for every call. The PCR is running 3 standard deviations above the 20-day mean (2.00), indicating heavy bearish sentiment or hedging activity. This could signal either continued downside concerns or a contrarian buying opportunity if sentiment is too negative.

ORTEX Stock Scores

INFY scores well across multiple dimensions:

• Total Score: 83.5 / 100 ⭐ (as of April 22)
• Quality: 89.9 / 100 (strong fundamentals, balance sheet)
• Growth: 65.3 / 100 (solid expansion trajectory)
• Value: 62.0 / 100 (reasonably priced)
• Momentum: 57.1 / 100 (weakest area - reflects recent price decline)

The quality score of nearly 90 reflects Infosys's strong financial position, profitability metrics, and operational execution. Growth and value scores are both above average, indicating the company continues expanding while maintaining reasonable valuation.

Fundamentals

• Forward Dividend Yield: 4.5%
• RSI (14-day): 51.95 (neutral territory)
• Analyst Upside Potential: +15.3% to target price
• Upcoming Event: Q4 2026 earnings on April 23, 2026 (tomorrow)

Investment Perspective

INFY presents an interesting setup heading into earnings:

Bullish Factors:

• Strong ORTEX quality and total scores (83.5)
• Attractive 4.5% dividend yield
• 100% utilization + rising CTB could pressure shorts
• +15% analyst upside suggests undervaluation
• Stock up 7% in past month despite YTD decline

Bearish Factors:

• Heavy put buying (PCR of 3.45) signals concern
• Down 21% YTD
• Earnings tomorrow create binary risk
• Momentum score weakest of the four categories

The stock appears caught between fundamentally solid metrics and negative near-term sentiment. The extreme put/call ratio and maxed-out short utilization suggest positioning is one-sided ahead of earnings, which can create volatility if results surprise either way.

Note: This is not financial advice. Always conduct your own research and consider your risk tolerance before making investment decisions. Data may contain inaccuracies.