Should you stay invested in Infosys post the September 2011 results? Does the rally in the counter merit profit booking? Check out what the experts suggest.
Infosys reported a growth of 10.8% in net profit at Rs 1,906 crore for the quarter ended September 30, 2011. In the previous quarter it was Rs 1,720 crore. Revenues jumped 8.2% to Rs 8,099 crore as against Rs 7,485 crore, quarter-on-quarter basis.
The markets reacted positively to the development and the stock rallied over 5% in opening deals.
Should you stay invested?
The numbers are in line with expectations, notes Srishti Anand, IT analyst with Angel Broking. “The company is factoring in less margin erosion going ahead, which is the key takeaway from the results and the company’s guidance. I expect the stock to move up 6–7% from current levels. One should stay invested for now,” she adds.
Rajat Rajgarhia, Head Research, Motilal Oswal Financial Services suggests that the September 2011 quarter numbers are in line with expectations. “The EPS guidance has been above what we expected. One should definitely hold on to the stock for now. However, since the stock has seen a good run up ahead of the results, fresh positions should only be taken on a decline,” he adds.
However, Jagannadham Thunuguntla, Strategist and Head of Research, SMC Global Securities recommends partial profit booking in the stock at the current levels. “The company has reported a good set of numbers with better-than-expected revenue guidance in dollar terms,” he states.
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