Last Updated : Aug 18, 2017 04:33 PM IST | Source: CNBC-TV18

Infosys press conference: Here's how experts react

Vishal Sikka resigns as Infosys MD & CEO; he will take on the role of Executive Vice Chairman.

Vishal Sikka resigns as Infosys MD & CEO; he will take on the role of Executive Vice Chairman.

Below are comments from experts after the Infosys' management press conference:

Girish Pai, Nirmal Bang Institutional Equities


"There is a fair chance that it (stock) could derate from current levels. Vishal Sikka has been in the process of transforming Infosys to the next generation IT services firm, so besides all the sniping that he has been facing from the sidelines over the last year or so, Infosys as a company has been going through its own problems which are industry related."

Moshe Katri, MD, Wedbush Securities   

"If I had to credit Vishal Sikka with anything I would say that he did a couple of things. He provided stability for employees, he did improve employee morale, he was able to stabilise attrition which was running at pretty big number before he came on board and he also probably repositioned the company comparatively while kind of engineering the whole transformation phase into what we call the new.

Obviously at this point we are assuming that Pravin Rao, Interim CEO will try to maintain that momentum until we get a permanent CEO on board and on the top of that will probably have to deal with potential other senior departures after Vishal leaving.

So we are in a kind of an uncertain mode for the stock at least we get some clarity on this CEO search that will be going on."

Dipan Mehta, Member BSE & NSE

"When there is such an intense selling pressure and anybody who wants to create a short position, Infosys and other tech companies are favourite whipping boys at this point of time. So some time the selling pressure can go to a particular extreme. So it is difficult to call for a bottom when the knife is falling as fast as it has but sum and substance remains that growth is no longer there in the IT sector and from investors' point of view no doubt stocks are cheap, valuations are at lower levels, PE multiples are attractive but in a situation where there is hardly any topline growth and there is pressure on cost and rupee appreciation and significant changes in the landscape of technology sector.

When you have such an uncertainty it is best from an investor point of view to avoid the sector and Infosys in particular which has got an added uncertainty as regards its top management."

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First Published on Aug 18, 2017 04:05 pm