Infosys Q2 results: Wealth creation story of large IT stocks is over

But Infosys can still remain as a defensive bet as a majority of the mid cap stocks are over-valued on the markets.

Infosys’ Q2FY2018 results are in line with the large peers in the industry – year-on-year growth in revenues and net profit stand at 1.5 per cent and 3.3 per cent respectively. TCS and Wipro have also posted poor single digit yoy growth in revenues or profits.

It is quite unfortunate that three key issues have been impacting the large IT companies including Infosys – first of all the ‘base effect’. Today India’s IT export basket of nearly $110 billion cannot maintain the kind of growth momentum the industry used to maintain in 1990s or a decade ago. IT export growth