Infosys shares plunged 15 percent in early trade after its fourth quarter numbers and FY14 guidance fell way short of market expectations. Kotak Securities Friday termed Infosys‘ fourth quarters numbers as â€˜very very disappointing‘, and said it expects to see a â€˜sharp correction‘ in the stock.
Kotak Securities Friday termed Infosys’ fourth quarters numbers as ‘very very disappointing’, and said it expects to see a ‘sharp correction’ in the stock. The numbers could hit sentiment for other stocks in the sector as well, the brokerage said.
The company’s revenue guidance of 6-10 percent growth in FY14 is way below the Nasscom guidance of 12-14 percent for the industry as a whole.
"FY2014 (estimated) revenue guidance is 6-10% year-on-year, including acquisition impact-extremely disappointing and bound to disappoint the Street and raise serious questions on recent optimism," said the Kotak flash note to clients.
"(The numbers)Validates our view that days of lazy extrapolation of last quarter results are (and should be) over for Indian IT," the note added.