BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Nomura downgrades Infosys to reduce
The biggest risk in INFO (in our view), the dispute between board and the promoters, culminated in the resignation of the CEO/MD, Dr Vishal Sikka. We view this news negatively, as: 1) it pushes back turnaround hopes with a new CEO appointment likely to take time; 2) it could hamper longer term growth, if senior management attrition continues, with newer initiatives being headed by external talent (largely ex SAP); 3) management churn at INFO would make clients cautious and competitors more aggressive; 4) FIIs have been incrementally negative at INFO lately on the dispute between promoters and the board and we consider this event would be further taken negatively. We believe other than an imminent buyback there might not be any major triggers to look forward to over the next two quarters.