Infosys gains on share buyback report
Infosys stock is underperforming by falling 11% so far in current calendar year compared to 14% rise in Sensex
Infosys has moved higher by 1.4% at Rs 2,495, bouncing back almost 2% from intra-day low, on reports that the board of directors of the company is likely to announce share buyback plan in tomorrow’s board meeting.
“India’s second-largest IT services company, to go for a share buyback worth $400 million (around Rs 2,215 crore). The company is expected to make an announcement to this effect on July 12 when it announces its first quarterly results for FY13,” the report suggests.
Infosys stock is underperforming its peers by falling 11% so far in current calendar year till yesterday, as compared to HCL Technologies (up 28%), TCS (up 9%) and Wipro (down 3.5%) on the Bombay Stock Exchange. The IT sector index was down 1%, while benchmark index Sensex up 14% during the period.
According to Emkay Research, Infosys to revise it’s FY13 revenue outlook to around 6.5-8.5% year-on-year growth v/s 8-10% earlier driven by cross currency movements, however expect earning per share (EPS) outlook to be raised to around Rs 172-174 ( V/s Rs 159-161 earlier) driven by lower currency resets.