- Wealth PMS (50L+)
Infy’s Q308 Results are out: (all comparisons are year-on-year)
Results seem to show that Infy seems fairly valued at current prices. Even after falling 20% from the last results time it doesn’t seem like a value buy, on earnings. They have 7700 cr. in cash, and the only way they can really propel themselves up is to utilise it properly. They make about 150 cr. profit per quarter purely on interest from FDs, which amounts to nearly 1/8ths of their quarterly profit! I would rather that they use it in business and improve the return on that capital instead.
Also note: My earlier post on Infy’s option action being significant is of no value. The results are not spectacular on the upside or downside. This could just be result based buying, and the option writers would have made a killing.
Disclosure: No current positions.