Infosys Technologies (INFY)

Add a New Bears Reason Company: Infosys Technologies (INFY) Current price: Headline: (100 character max) Analysis: Cancel 50% agree 2 votes   Further decline possible due to lower growth Top Contributor: Girish Nayyar | Created when NASDAQ:INFY was $24.72 | Edit | History The stock is now 50% down since my last writing. As per company's own guidance for FY 09, its EPS will be max Rs.110(~$2.2), which means the stock is trading at a P/E of 11. The rate of earnings growth is now declining and in these recessionary times, even a 5-6% growth would be somewhat optimistic. The investors have turned cautious and fearsome to equities as an asset class and every stock will undergo a tight scrutiny before being considered as a safe investment. A prudent investor would want a stock's P/E to be less than or equal to its growth rate, and in fact most of the stocks are now trading at a much lower P/E of 5-6. By this simple measure itself, the stock still has afar way to go down before it offers a decent margin of safety to weather out the turbulent markets. (100 character max) Cancel 50% agree 2 votes   Rising Rupee and economic slowdown fears Top Contributor: Girish Nayyar | Created when NASDAQ:INFY was $44.41 | Edit | History Rising rupee and fears of economy slowdown in both US and Europe are hindering factors for any further rise in this stock. Its difficult for the industry altogether to continue growing at breathtaking pace of 50-100% observed in the past so many years. (100 character max) Cancel

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