Shares in the company have fallen 13 per cent since March 26, 2012. In contrast, the Sensex has been flat over the same period. TCS, India's biggest software services exporter, has gained over 6 per cent over the same period.
Recent underperformance has been over concerns that the company may cut its FY13 guidance to 6-8 per cent growth from the current 8-10 per cent.
Meanwhile, analysts at Enam Securities interacted with the senior management of Infosys.
Here are the key takeaways.
1) Dollar revenue guidance to be impacted: Q1 revenue growth is likely to be in-line with guidance in constant currency terms but adverse cross-currency moves may impact reported US dollar growth rates. The rupee has fallen over 12 per cent in the last three months, and the company's hedges might not have taken the sharp fall into account.
2) Banking, financial services, and insurance vertical (BFSI), which contributes nearly 35 per cent to the revenue share, may weaken further. This vertical is likely to see budget cuts in the second half of 2012.
3) The retail verticals, which contributes nearly 16 per cent to the aggregate revenue share is flat, while the telecom vertical (10% contribution to revenue), continues to lag. The only vertical seeing some traction is manufacturing (21% contribution to revenue).
4) Decision making has been slower in Europe.
5) Large deals visibility narrows: The momentum on large deal pipeline is lower as compared to a couple of quarters back.
Enam has a hold rating on the stock with a target price of Rs 2,594, which implies 5 per cent upside from the current market price.