By Vipin Agnihotri
Take a look at two value stocks identified by The India Street.
Tata Consultancy Services (TCS)
As was the case with other IT stocks, Tata Consultancy Services was under selling pressure and fell from around Rs 1,300 in February 2007 to Rs 800 in January 2008. At this moment of time, it is trading at around Rs 899.95.
When I analyzed this stock, I found that its profitability growth has slowed down from 43 per cent in March 2007, to 24 per cent in December the same year. Point to be noted here is that the company added 54 new clients, with the biggest contract being a $1.2-billion full-services deal with The Nielsen Company. There is quite a good chance that global economic slowdown will create cost-control pressures that will see more work outsourced to India. As an investor, you can take advantage of that.
Infosys Technologies-
Widely been regarded as India's hottest software company, Infosys lost 30 per cent of its market cap last year, partly on fears of margins thinning due to the appreciation of the rupee. In the initial part of this year, Infosys saw an increase in buying interest as the market felt this stock has been oversold and has bottomed out at around Rs 1,400.
The rupee appreciation does not able to hinder Infosys from growing at a healthy clip. For example, in the December-2007 quarter, sales increase around 16 per cent and net profits 24 per cent. More importantly, Infosys added 47 new clients and 11,683 employees during the same period. This is a must buy stock for long-term investors.
Suggested Reading:
0 comments:
Post a Comment