Infy Q3 results unlikely to be strong; but good buy: Tandon

Anand Tandon, CEO, JRG Securities expects no fireworks from Infosys Q3 results, still it is a good buy.

Tandon told CNBC-TV18, "This time quarter results for Infosys are not likely to be good, nor is the guidance likely to be good. My reason for looking at IT is on two counts. I am expecting that the Indian market will not be as great as it has been in this year as it was in the last year and consequently I expect to see pressure on the rupee being maintained. To that extent the IT sector will benefit."
He further added, "I am assuming that the US markets will revive a little faster that what most people anticipate. There is activity already that is starting there. Though we keep talking about the fiscal cliff and so on the fact is that the companies there are sitting on pots of cash. I would imagine that the outlook for demand may be slightly better. In the case of Infosys I have no reason to say this, but it is almost going to be impossible for them not to do an acquisition this year because the kind of cash pile they are sitting on and the kind of organic growth that they are forecasting, to stay in the race they definitely have to make an inoraganic kind of acquisition. Either which way if you look at it, it is not as if the stock has dome very well or is being very highly priced. So, in either case it seems to be one of those rank underperformers which given the fact that its actually a good company may be a good time to start looking at buying in.