I’ve been a long-time admirer of Infosys and its outstanding management, specifically N. R. Narayana Murthy and Nandan Nilekani. The corporate culture, talent pool, world-class client base and deep management strength are formidable.
Everyone knows Infosys Technologies share would be the one of KING of stock market ups and downs. Today Infosys share down nearly 9% and reached Rs.3000/- levels. Now in everyone mind whether can we buy this share or sell it? In my case I would really think to buy when the this kind of share get into dips. I’m pretty sure that this share would reach another good levels I believe Rs.5000/- in next 6months however that depends on the market trends.
These kind of shares you can buy and keep for long years like your pension plans, daughter’s marriage, investment purpose etc.
At the same time I still don’t expect this to be the bottom for Infosys. We will see some
more downside from here. The reason being that over the next couple of days you will
have some more downgrades coming from various analysts and when that happened
you will have further selling coming in. So I see levels of closer to about Rs 2700-2800
One can again start buying in a small way. Again for long term you will not have an immediate bounce back. Whatever bounces back you will have from even that Rs 2700-2800 levels will be for Rs 100-150, not really beyond that. So only if one has a view of possibly 12 months plus then I think one should start buying at about Rs 2700 levels. In that fall it is possible that it can even breach that and go down. So I think one should buy more at lower levels. But Rs 2700-2800 levels are the levels at which you should start buying
I believe being the bellwether of the Indian IT sector Infosys is best valued using PE valuation. As can be seen from the PE graph Infosys has been trading in the 23x brand in recent times. I expect it to trade in the same range moving ahead. Therefore using a PE multiple of 23x for its’ FY13E EPS of Rs.144.98 per share I arrive at a target price of Rs.3663.
Forbes magazine has named Infosys in its list of Global High Performers. For investors wanting their money to grow without compromising on safety factors, Infosys is the company to park their
funds.
Forbes magazine has named Infosys in its list of Global High Performers. For investors wanting their money to grow without compromising on safety factors, Infosys is the company to park their
funds.
All companies will have bad times and good times. So, it is prudent in long run to select to enter into a good company during its bad time, instead of a bad company at its good time.
I have started buying infosys... thinking better late than never!
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