slipped over 13% intra-day to Rs 884 levels on the Bombay Stock Exchange (BSE) after Vishal Sikka, managing director and chief executive (MD & CEO) of the company quit. It, however, trimmed losses to end the day 9.6% lower at Rs 923 levels.
Despite the fall on Friday that was triggered by Sikka’s exit and concerns across the information technology industry given the slowdown in revenue from the BFSI (banking, financial services and insurance) segments, H1-B visa related issues, automation etc, Infosys
has managed to outperform peers since Vishal Sikka
was announced the company’s MD & CEO on June 12 , 2014.
Also Read: Hits and misses of Sikka's 3-year journey
On an absolute basis, Infosys
has gained nearly 29% at the bourses – from Rs 793 levels on June 12, 2014 to Rs 1,020 levels on Thursday – a day prior to Sikka’s resignation, ACE Equity data show. By comparison, the other information technology heavyweights – TCS and Wipro – gained around 11% and 8%, respectively during this period.
At the index level, Infosys
also outperformed the Nifty IT index that gained around 14%. By comparison, the Nifty50 surged a tad over 29% during this period.
Even if Friday’s fall was taken into account, Infosys
(up 16%) outperformed TCS and Wipro that gained around 12% and 8%, respectively since Infosys
announced Sikka’s appointment as the MD & CEO on June 12, 2014. The Nifty50 and Nifty IT indices gained nearly 29% and 12%, respectively during this period.
Also Read: Need to return to an environment of trust: Sikka's mail to Infosys staff
“Sikka’s exit draws a long drawn out board room battle to a close. While the Company did better than the industry during Sikka’s tenure, it was nowhere near achieving Sikka’s own $ 20 billion target by 2020. The forthcoming buyback may belay the stock from falling more. Sikka’s allegation that he was continuously being distracted does not wash as he had long enough a honeymoon period to make his mark,” said V K Sharma, Head - PCG, HDFC Securities in an emailed note.