Originally posted by Shiv R Lets see how it goes tomorrow, as TCS will report it's Q2 results...The stock is trending south since yesterday!

my guess is the results will just be as per market estimates - not too good not too bad either

I have been telling since long time now that HCL and TCS are best bet in IT for now. These two have made heavy investments in IP, people and processes. Just two yrs back these two were under performing now outperforming INFY. When INFY has already started taking right steps (mgmt changes etc) and investments, analysts would write obituary for the stock. Analysts are anaylyst, they can't stop looking backwards.

I think better to ride the story if one is doing it already but time to switch is coming close. You would notice that INFY rallies before qtrly results in anticipation of turnaround. If it happens in any of the results, it would rally hard and would not give much time to enter. I would use any significant weakness in Infy to keep building positions over next 3-4 quarters. I do not hold any of these stocks. I happen to dislike all of the current bunch of promoters on Infy's board. Had they been regular employees, they would not have come close to the positions they hold today. This would give pain for few more quarters at least.

The reason for my optimism is that now they are backing their strategy with actions. They wanted to maintain margins but where are the offerings, so they acquired high end consulting firm. Mind boggling decision of holding back wage increments (as if they operate in vacuum) for employees was reversed too. I guess things are getting better on the margin.

Edited by FutureBull - 20/Oct/2012 at 7:55pm

Originally posted by FutureBull I think better to ride the story if one is doing it already but time to switch is coming close. You would notice that INFY rallies before qtrly results in anticipation of turnaround. If it happens in any of the results, it would rally hard and would not give much time to enter. I would use any significant weakness in Infy to keep building positions over next 3-4 quarters. I do not hold any of these stocks. I happen to dislike all of the current bunch of promoters on Infy's board. Had they been regular employees, they would not have come close to the positions they hold today. This would give pain for few more quarters at least. The reason for my optimism is that now they are backing their strategy with actions. They wanted to maintain margins but where are the offerings, so they acquired high end consulting firm. Mind boggling decision of holding back wage increments (as if they operate in vacuum) for employees was reversed too. I guess things are getting better on the margin.

Right, i am already invested when stock was crushed and will accumulate further when it goes weak and below forward PE of 11-12. Such opportunities are coming from time to time. Reasoning is simple here -

1) INFY is a resilient company so it will take time but recover from current lethargy.
2) Current problems are solvable, Brand is intact and demand will always be there for all dirty work which INFY does.
3) 18K Cr cash and dividend protects too much downside below PE of 11-12

My expectations are simple, i am looking for 20+% compounder here in long haul with limited downside.



Edited by manish_okhade - 20/Oct/2012 at 10:37am