Shah told CNBC-TV18, "Infotech disappointment has been now prolonging for quite a few quarters and their ability to squeeze the margin from the pressure of wage and other cost and also from turning around some of the acquisitions which they made in the previous year have not been coming along."
He further added, "On the conference call also what we understood that FY12 also the margin expansion is not going to be immediate and will take time. So while the topline is pretty strong and impressive and client addition is very good, on the margin part, the investors are going to get some more disappointment or they may have to wait for a longer time. So we have in that anticipation changed our price earning ratio to 10 times instead of 12 times for FY12 and brought down our stock price target from Rs 198 to Rs 165 and now we have a hold on the stock instead of a buy. So we would wait before we see an evidence of margin improvement in Infotech."
