Infosys at lower circuit

Stock is at LC at 1250 due to extremely poor results and lower guidance for next year.

Is it a stock worth buying for ?

  • short term?

  • long term?

Panic is at peaks. But generally investor community says not to panic and add when good companies correct.

Are you taking any trade in INFY ?

The strike I want is not there. 1000 pe. :smiling_face_with_tear::smiling_face_with_tear::smiling_face_with_tear:

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I am not at all experienced, but i would add when the price stabilizes a bit and starts moving up. This is like catching falling knife. But maybe small quantity. You have confused me too now.

  1. Second most owned stock by Mutual funds.

  2. Last one year, MFs and retailers have loaded up in this scrip.

  3. Sector is in deep shit

  4. Over owned stocks generally go up slowly when the sector is in trouble.

I would look to add only on big dips of 5-10% with a moderate return expectation over 12 months.

Basically there are better options available in market in my view

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Yeah. That’s what I do.
But I wanted to sell 1000 put today because I already have exposure to IT.
Since the strike was not there I went ahead with HCL. Sold 900 put at 3.7.

I don’t mind taking delivery at 900.

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Really - In which metric was the result extremely poor.

Turnover - 146,767 (PY 121,641)
Operating margin around 22%
Net Profit - 24,108 (PY 22,146)
ROCE - 38.97%

full year order book is 9.8 billion USD.

How are these numbers extremely poor performance.

If you are referring to the market price of shares, it is pure sentiment, the narrative is recession in USA and war in europe will keep the IT spending in check. Yeah, might be true but as long as they have a tidy order book, the companies will be good. Great opportunity to add on and only worry about your average cost.

Pure long term story as a investor

no one is denying that

  • Missed achieving FY23 guidance due to Q4 performance.
  • Slowest constant currency revenue numbers. 3.3% degrowth, slowest in a decade.
  • Uncertainty about future due to challenging environment in BFSI and moreover the guidance for the upcoming year was pretty low and uninspiring.

Make no mistake, the numbers are extremely poor

Future is uncertain atleast for the near term. but once things stabilize, stock should start recovering.

Markets worry about future. not present.

Yes. But we all know what happened during the 4th quarer. These are guidance numbers. How often do company always meet their guidance

Infosys’ revenue growth in constant currency terms came in at 4% sequentially, and 18.8% on a year-on-year basis, in line with analyst expectations.

These things are expected to happen. How a company tackle them shows their professionalism. In 2008 when the entire banking sector almost failed in USA, these company still survived and grew. With regard to guidance who has seen tomorrow, for that matter next year. It is all projections and anything can happen. Anybody could guess Credit Suisse would fail? Anyone thought few small banks would go under - No one can predict these things.

No. I do not think so. The historical numbers (based on financials) do not, in any way, indicate extremely poor performance. There is growth when compared to the previous year. When there is YoY growth, it is not ok to call it extremely poor performance. It is not.

But this is the beauty of stock market. When one person thinks the stock is going under there has to be another who thinks this is a great opportunity to buy in. Each one to their own, risk taking ability.

This I agree. With an order book of 9.8 billion, I am sure they will sail through the so called tough times. For Infosys and TCS, the world is their market and hence there could always be some order they might get in some remote country. They are not restricted to one geography. Their main cost is human capital and it just does not take long to re-adjust this by firing people and reducing the cost. Last year, if I remember right, most of these companies had to struggle with attrition and high wage cost, now this has stablised I think.

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