Joined: 01/Jan/2006
Location: India
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Posted: 15/Nov/2006 at 1:38pm
Yes, I have a weakness to sticking with strong management andInfosys is Infosys. Buy it at ANY price and over the long term you will not lose money. Even the ones who had bought at the peak of the dotcom bubble have got back their price.With the growth in EPS the stock price would become cheaper. I think we should see Infosys at close to Rs 2800 in one year's time.
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In case you are interested in valueing the company. Then there are 2-3 criteria. Book value, PE, ROCE, RONW.
Simpletest of these are PE and widely discussed. Specialy for software companies book value does not hold the merit. ROCE could a interesting tool. I don't know how to calculate ROCE. May be u need to get this from your broker.
FOR PE. just go to bseindia and search for subject and get trailing 4 Q EPS. Then divide current market price by this value. You get PE.
Remember PE is 2 edged sword. Low PE means more protential to catch up with peers but also it means the current state of the company (may be bad and uncerain promotor, sector etc.).
One rule of dumb is PE should be similer to EPS growth (%). If PE is less, then company is undervalued and vice-versa.
Joined: 01/Jan/2006
Location: India
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Posts: 18403
Posted: 15/Nov/2006 at 3:16pm
Vipulji has explained it well. I like looking at the RoE which can be computed as EPS/BV. About a detailed analysis on Infosys we have a discussion in the relevant section you may see that apart from that I generally do not understand software companies so would not be able to speak more. About the potential losses from leaving out high PE stocks this could be an interesting read
Edited by basant - 15/Nov/2006 at 3:17pm
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I would use historical or trailing P/E just to get an idea of valuation but the more important thing would be to look at P/E based on 1 and 2 yrs forward EPS. The stock market discounts the future and hence P/E based on 1 to 2 yrs forward earnings are more meaningful than historical or trailing P/E's.
I would look at ROE and ROCE.
And most important for growth stocks I would look at PE to Growth, PEG.
Above are my views and others may post what numbers/ratios they look at.
Joined: 20/Aug/2006
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Posted: 24/Jan/2007 at 1:42pm
infosys most reputed Indian firm
January 24, 2007 11:46 IST
Last Updated: January 24, 2007 12:34 IST
For the fourth consecutive year, software major Infosys topped the ACNielsen Corporate Reputation Index, according to the 2006 ACNielsen Corporate Image Monitor.
Two other IT giants -- Wipro and TCS -- featured among the top 10 most favourable companies, while the IT industry retained its position as the most reputed sector.
The ACNielsen Corporate Image Monitor is an annual syndicated study conducted by ACNielsen ORG-MARG. The study is conducted and designed to measure key perceptions of the performance of leading corporations in India, to help benchmark company image and reputation.
"The IT sector is very well perceived by Indians. This year, even auto and steel companies have started to make their presence felt," said Prasenjit Das, associate director, ACNielsen, India.
In its sixth edition, the ACNielsen Corporate Image Monitor reflects the significant improvements witnessed by the auto industry in the past two years.
In this round, there are two automotive companies -- Bajaj Auto (3rd) and Maruti Udyog Ltd (9th) -- in the top 10 of the Corporate Reputation Index. Tata Steel, the only steel manufacturer in the list, has improved significantly from last year.
Overall, the impression of the top 20 companies improved significantly in 2006. The average Net Image Goodwill, which the study computes on the basis of the net of positive and net of negative rating on all dimensions for the companies, shows the average NIG of the top 20 companies saw a sharp improvement to 29 per cent in 2006 from 23 percent in 2005.
Companies with sharp improvements this year were Bajaj Auto (from 9th to 3rd position), HLL (from 10th to 4th position) and Tata Steel (from 14th to 7th position). ICICI Bank is the sole entrant from the banking sector in the top 10.
Meanwhile, respondents were optimistic about the future of all these companies, with most expecting high or stable future growth for almost all the 20 companies studied. The sense of optimism was most buoyant for IT companies, with the IT sector taking the top three places in the 'Opinion about the Future'.
To capture the growing importance of Corporate Social Responsibility across boardrooms in India, the ACNielsen Corporate Image Monitor recently added CSR as an additional measurement dimension.
Infosys, Tata Steel and Wipro were rated as the three most socially responsible corporations. Tata Steel holds a much higher rank in CSR when compared to its overall standing in terms of corporate image.
"Nearly three quarters of respondents interviewed feel that companies in India today have become socially more responsible," Das added.
URL for this article: http://www.rediff.com//money/2007/jan/24infy.htm
Infosys Technologies, the country’s second-biggest software company, is seeking acquisitions in France and Germany to raise sales in the region and help the company become less dependent on the US market, chief operating officer S Gopalakrishnan said in an interview.
“Generally we are looking at acquisitions in Europe, especially in the areas of solutions, consulting,’’ and in countries such as France or Germany, Gopalakrishnan said in an interview from Davos, Switzerland, where he is attending the World Economic Forum’s annual meeting.
Infosys reported record third-quarter profit on January 11 after banks and insurers increased orders, the third straight period of more than 50 per cent growth in earnings. Sales climbed 44 per cent.
The company aims to reduce its reliance on the US, where it generates 60 per cent of sales, by expanding in other markets.
The Bangalore-based company’s long-term target is to derive 50 per cent of sales from North America, 30 per cent from Europe and 20 per cent from Asia, Gopalakrishnan said.
Europe has grown in the past five years from being 14 per cent of sales to about 26 per cent of sales now, he said.
Infosys still aims to win more orders to customise software and manage computer networks in the US, after being added to the Nasdaq-100 Index last month.
Keeping Up “Clearly the challenge for the industry is growth and adding people,’’ Gopalakrishnan said.
The company is doing “multiple things’’ to attract workers, he said. Infosys is relying on the value of its brand, which has made it “a preferred employer in India so we are able to attract a lot of people,” he said. The company also recruits at the entry level and trains workers, the COO said.
Infosys said earlier this month that attrition, the rate at which workers quit, increased to 13.5 per cent in the three months ended December 31 from 10.8 per cent a year earlier.
Software makers, including Infosys and its larger competitor Tata Consultancy Services, are facing problems in retaining employees as global rivals International Business Machines Corporation and Accenture hire India’s low-cost engineers.
Infosys’s third-quarter net income rose 52 per cent to Rs 983 crore ($221 million), beating the Rs 978 crore profit analysts had anticipated.
Life can only be understood backwards—but it must be lived forwards
Software giant Infosys Technologies is all set to become India’s largest hospitality company this year. With plans for 15,000 rooms spread across its campuses in Bangalore, Hyderabad, Chennai, Pune, Bhubaneswar, Hyderabad, Mysore and Thiruvananthapuram, Infosys will emerge as the largest hospitality provider in India by June 2007, when measured by number of rooms it will offer.
By contrast, Indian Hotels, the company that runs the Taj chain of hotels, has 6,200 rooms across its 59 hotels. ITC Hotels, which runs the Sheraton chain of hotels in India, operates 77 hotels with about 6,000 rooms.
No, Infosys, India’s second-largest software company behind Tata Consulting Services, isn’t suddenly diversifying into hotels. At least, not right now.
Infosys, which calls its facilities ‘hostels’, is reacting to soaring hotel rates in the cities in which it operates, especially Bangalore, where hotels are often sold out even at $400 (Rs17,200) a night. India has a chronic shortage of mid-priced hotel rooms amid a sharp increase in domestic business travel and, during high season, across all hotels. Overseas visitors to India, for instance, rose by 13% last year.
“At a minimum saving of $100 a room for every day, we save significant money if you take into account that, on an average, 6,800 of our employees are travelling on work at any given point in time,” says Infosys director (human resources) T.V. Mohandas Pai. Currently, Infosys already has eight facilities operational with 3,711 rooms for its 69,000 employees.
Life can only be understood backwards—but it must be lived forwards
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