ALSO READInfosys saga explained: Vishal Sikka's exit & erosion of shareholder value Infosys stock outperforms TCS, Wipro during Sikka's tenure Sikka's exit: Infy records sharpest fall since Apr 2013, ends 9.6% lower Infosys tanks as Vishal Sikka quits as MD & CEO. Should you sell the stock? Vishal Sikka logs out of Infosys: Exit explained in 60 seconds
At 03:30 pm; with a market-cap of Rs 200,640 crore on Monday, Infosys has lost Rs 33,915 crore market-cap in past two trading sessions, from Rs 234,555 crore on Thursday, August 17, 2017. The company has seen market-cap erosion of Rs 90,406 crore from its peak level of Rs 291,046 crore on July 6, 2016.
At the bourses, Infosys has dipped 14% in the past two trading sessions to Rs 874, its lowest level since August 8, 2014, after the IT major's buyback plan failed to cheer the markets. The company, on Saturday, had announced that it would buy back shares worth up to Rs 13,000 crore, or 4.92% of its paid-up capital, from investors at Rs 1,150 per share.
“Dr. Sikka's exit was the biggest risk and with this becoming an eventuality, the company faces a big challenge of filling the leadership vaccum. Dr. Sikka had guided the company well at a time when the industry is undergoing a metamorphosis towards newer technologies,” said analysts at Antique Stock Broking in a note.
We believe that leadership churn and the resultant growth slowdown will result in stock trading at the lower end of its historical range, said brokerage firm in company update report.
Analysts at HDFC Securities believe that Infosys’s 6.5-8.5% constant currency (CC) revenue growth guidance for FY18 (2-3.3% CQGR ask rate) is a tough ask now. The brokerage firm believes the discord between the Board and founders may impact senior management performance. This increases the risk of top-level attrition, especially recruits from SAP and other companies working out of Infosys’ US offices.
|Categaory||in %||Rs crore|
|Foreign Institutional Investors||37.53||12728|
|Mutual Funds / UTI||8.95||3035|
|% Holding as on June 30, 2017|
|Market-cap lost in past two trading sessions.|