Corrections to a large extent become an opportunity to buy Infosys stock and at current levels, it is fairly valued,” said Apurva Prasad, research analyst IT, HDFC Securities.
There has been another big management exit from the tech major Infosys. CFO, MD Ranganath has resigned from Infosys citing personal reasons.
“It is a negative development. The large part of the rally can be attributed to stability post the transition that happened a year back plus the capital allocation which they continued with," Prasad said.
It does question the stability at least in the near-term, he said. "We also must realise one thing that a lot of it is completely institutionalised so while this would be a near-term setback, a lot of processes are in place,” Prasad added.
“Infosys about 20 percent discount currently, we have a 25 percent discount that we are valuing," Prasad said.
So, HDFC Securities is valuing Infosys 18 times and Tata Consultancy Services at 24 times on FY20, he said, adding that it will definitely hold on for a variety of reasons.