Thursday, January 10, 2013

10 reasons why Infosys shares are up 15%

  1. Infosys net profit at Rs.s.2,369 crore in the December quarter was flat against Rs.s.2,370 crore in the September quarter, but much better than the average estimate of Rs. 2,100 crore in a poll of 16 analysts, according to Thomson Reuters.
  2. Infosys said revenue rose 12 per cent in October-December to Rs.s.10,424 crore from Rs.s.9,300 crore a year earlier. That compares with analyst estimates of Rs.s.9,680 crore.
  3. Dollar revenues for the December quarter stood at $1.91 billion against $1.79 billion in the previous quarter and better than estimates of $1.87 billion.
  4. The biggest positive for the stock was the upward revision announced in the full year dollar sales forecast. Infosys said FY13 revenue forecast is seen at $7.45 billion, which is better than $7.34 billion projected by the management earlier. The new guidance implies 6.5 per cent growth year-on-year and includes Lodestone's revenues.
  5. Earnings per share for the full fiscal are likely to be Rs.s.162.80, a 10.4 per cent jump over the year ago period.
  6. Infosys maintained margins despite higher operating costs. EBIT or operating margins declined to 25.69 per cent against 26.3 per cent in the September quarter, but better than estimates of 25.5 per cent. Margins declined on account of wage hikes.
  7. Infosys managed to post 2 per cent sequential growth in volumes though the biggest surprise was the pick-up in pricing, which rose 3.7 per cent. Utilization rate rose to 70.1 per cent against 69.60 per cent.
  8. Management sounded optimistic: S. D. Shibulal, CEO and managing director of Infosys said the company has done well in this quarter despite an uncertain environment. "We continue to gain confidence from a strong pipeline of large deals. However, the broader economic environment remains difficult. Even so, we remain cautiously optimistic about the January-March quarter", he added.
  9. Analysts said the worst might be over for Infosys. "This is a very credible performance. Infosys has exceeded our estimates at the bottom line by 4-5 per cent and they have done this after 4-5 quarter... so, kudos to the management. The combine of a beat on actual Q3 numbers and upbeat guidance should reflect in our and most brokerage estimates going upwards," Saurabh Mukherjee of Ambit told NDTV Profit.
  10. Brokers were upbeat: Kotak said Infosys had reported an excellent quarter with organic growth beating expectations. Nomura said Q3 revenues were very impressive and organic growth guidance not being cut is positive. Citi said Infosys has showed a substantial beat in Q3.
    This information is taken from Ndtv profit site and I am posting it for my clients and followers

Why eClerx Is A Hot Buy?

About eClerx
eClerx provides an expert outsourcing option for managers of financial institutions who demand accuracy, regulatory compliance, and cost efficiency.
eClerx is known for its mastery of the processes, regulations, and infrastructure that are the backbone of today's global financial organizations. Look to eClerx as your Knowledge Process Outsourcing partner for trade support and validation, settlements and clearing, asset servicing, risk management and reconciliation, metrics and reporting, expense management, or special projects. With 150 Business Analysts and Project Managers, eClerx can help you analyze and streamline processes, as well as carry out full deployments from analysis to go-live.

 One among the largest third party KPO focused firms in India
 Engagements supported core to our client businesses and non-discretionary 
 Long term contracts (2-3 years) with recurring revenues
 Highly specialized services based on deep domain proficiency in target industries
 Dedicated in-house technology team builds proprietary workflow tools and 
 In-house training school with 2,500+ courses spanning specializations
 Cutting edge infrastructure and proven information security practices


The company has seen revenue from its top five clients grow steadily from 2009; they now account for 80 per cent of its overall revenues. This indicates that the company has been able to mine its existing large-clients effectively.
eClerx acquired Agilyst, an US-based KPO player, in April this year. In addition to helping it penetrate the US market, this acquisition gives the company more clients to work with.
Agilyst does business servicing of several US-based cable companies and is expected to deliver about $14 million in revenues for the current fiscal.
eClerx would thus be enabled to broad-base its clientele by getting into the US media industry.
eClerx is a zero debt company like infosys. In this high interest rate scenario this is very important and for further biz expansion co is capable of investing with its reserve cash.
The promoters are holding 54.16% of stakes and Fii holds 20.31% stakes in eClerx.Management is pretty confident in co's future growth.General public holds only 9.99% in company.

 So I would like to add eClerx in my top buy list for SIP mode investments for another 5 years by  seeing more growth in future

Infosys Q3 beats estimates, net profit at Rs. 2,370 crore

IT major Infosys' third quarter profit for the October to December period was flat at Rs. 2,369 crore, but the numbers are better than estimates of Rs. 2,244 crore.

Sales rose 5.7 per cent to Rs. 10,424 crore from Rs. 9,858 crore in the previous quarter. On a year-on-year basis, sales jumped 12 per cent from Rs. 9,300 crore a year earlier. 

The biggest positive for the stock was the upward revision announced in the full year dollar sales forecast. Infosys said FY13 revenue forecast is seen at $7.45 billion, which is better than $7.34 billion projected by the management earlier.
Recently LIC raised their holdings in Infy to 7.24 from 4.92.
Ahead of this robust numbers and upward revision revenue guidance I expect Infy to cross 3000 mark in another 6 months.So I initiate a buy call on Infy with a delivery target of Rs.3000 in 3 months frame

LIC ups Infosys stake by over 2 pc; buys shares worth Rs 3,000 crore

State-run insurer LIC has hiked its stake in Infosys to 7.24 per cent, raising its holding in the IT major for third straight quarter with an estimated purchase of shares worth over Rs 3,000 crore.
LIC  which figures among the country's biggest institutional investors in stock market, held 4.92 per cent stake in Infosys at the beginning of the current fiscal on April 1, 2012, which has now risen to 7.24 per cent.


This is my findings from stock market and I am sharing it with my clients and followers
 1)FIIs pumped in a net $24 billion (Rs 127,480 crore) so far in 2012, the second highest investment in India since 1992, data shows.
2)Nifty pe  now trading at 18.89.
3)When nifty trading at ever time high of 6357 on 2008 nifty pe ratio was at 28.
As FII invested record level during 2012 I strongly believe they wont withdraw fund immediately.I think nifty is not expensive when compared to pe ratio earlier in 2008.Our market is attractive while compared to Nikkei,Shangai and other asian and emerging markets
With the positive reforms measures taken by Govt like Retail FDI,FDI in Aviation,Cut in subsidy burden and Rise in Petrol prices,lowering fiscal defecit of Indian economy and better macro economic condition in world economy and passing of fiscal cliff deal in USA,I expect nifty to hit new highs on better global economic conditions in coming months
My Advise
So I recommend my clients to continue investments and hold positions for more returns.But finding good stock for investments is obiviously a difficult task.I have researched and find out some good companies which are superior in fundamentals and having good biz models for long run.These companies are either having low debt,good top line and bottom line figure and potential multi-baggers in long run.So I advise clients to invest in these ten companies for next 5 years through SIP mode of minimum Rs.1000 per month for better returns.Select one company which is attractive levels out of this ten each month and invest every month