Why TCS trades at a premium to Infosys despite lagging in revenue growth
Attrition rose sharply at Infosys and the company alluded to moderation in profit margins in FY22. Meanwhile, TCS is displaying resiliency in its profit margin
April 16, 2021 / 08:59 AM IST
Infosys’s constant currency revenue growth exceeded that of Tata Consultancy Services (TCS) for the second consecutive year in FY21. Still, Infosys continues to trade at a discount to TCS. Jefferies India and Kotak Institutional Equities value Infosys at around 26 times the current fiscal year (FY22) earnings estimates vis-à-vis TCS at 30 times.
Of course the story at Infosys since the appointment of Salil Parekh as the chief executive officer and managing director in 2018 has been growth reinvigoration and reduction in...