There has been a historic overhaul at Infosys as several changes took place at the IT major. This includes co-founder Nandan Nilekani's re-entry as board Chairman and the removal of several members of the board.
To know how this will impact the stock and outlook going forward CNBC-TV18 spoke to Ravi Menon, Analyst IT Services, Elara and Mehrab Irani, General Manager-Investments, Tata Investment Corporation.
All that has transpired in Infosys over the last several months impacted the investor sentiment but now with Nilekani coming back it could be a positive, especially with him being the co-founder etc but it would not be easy for him as well, because the sector is going through many other challenges, said Irani.
The stock price could get support from the buyback price but once that is done, it is difficult to talk about the outlook and tell if it is a value stock at current juncture, said Irani. Therefore, if one already owns the stock then they could hold it but for fresh positions it would be advisable to wait for further clarity, he added.
According to Menon, one is not clear about how much time Nilekani would be able to give to Infosys because of his other engagements. Therefore, coming in of Nilekani does offer some comfort but not enough to buy into the stock. One also has to wait for the assignment of new CEO.
Post the buyback, the stock could see 2-3 percent correction, said Menon.
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