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Infosys valuations steadily sliding

Posted by fairval on April 16, 2012

Infy valautions have now come down to about 14x FY13x eps (Rs 160-170 range).


This is now lower than TCS and Wipro.


The question is – whether the structural change the IT services business, and more so Infy, is going through, is over. One repeatedly hears that the days of 30% plus EBITDA margin are over. 20-25% is more sustainable for IT Services. Infy is a long way away from there. Even TVS is around 29%.

So Infy may not be quite have reached the bottom of the trough yet. Though, rupee can save it for sometime, if it dives below Rs 55 in 2012.


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