Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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As a continuation of our Long Term Leaders we look at Infosys (INFO), which has rallied 55% since new the CEO was appointed in Jun 2014, resulting in it outperforming the index by 35%. At current valuations, the stock looks pricey and in our view, we would switch to TCS, as the re-rating might take a breather for now, given: <ul><li>Earnings revision have been slowing down and earnings momentum seems to be waning</li><li>P/E re-rating has led to INFO trading in line with TCS, it larger peer, even though growth is expected to lag TCS...</li><li>...and INFO's metrics remain inferior on multiple counts vs TCS</li></ul> <ul><li>No doubting new CEO's ability to execute but actual transformation will take time</li><li>Currency issues could provide headwinds in the near term</li><li>Fight for talent will continue to heat up</li></ul>

As a continuation of our Long Term Leaders we look at Infosys (INFO), which has rallied 55% since new the CEO was appointed in Jun 2014, resulting in it outperforming the index by 35%. At current valuations, the stock looks pricey and in our view, we would switch to TCS, as the re-rating might take a breather for now, given: Earnings revision have been slowing down and earnings momentum seems to be waningP/E re-rating has led to INFO trading in line with TCS, it larger peer, even though growth is expected to lag TCS......and INFO's metrics remain inferior on multiple counts vs TCS No doubting new CEO's ability to execute but actual transformation will take timeCurrency issues could provide headwinds in the near termFight for talent will continue to heat up

Infosys (INFO IN) - Transformation continues but re-rating could be in for a break

India

Infosys Limited provides IT consulting and software services, including e-business, program management and supply chain solutions. The Group's services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses specializing in the insurance, banking, telecommunication and manufacturing sectors.

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Infosys Ltd (INFO IN)

Infosys (INFO IN) - Transformation continues but re-rating could be in for a break

As a continuation of our Long Term Leaders we look at Infosys (INFO), which has rallied 55% since new the CEO was appointed in Jun 2014, resulting...

Sumeet Singh

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