FIIs raise stake in Infosys in Q2 despite exits of top execs including Ashok Vemuri

Comments 0
SummaryFIIs have raised their stake in Infosys in Sept quarter despite the string of top-management exits.

Foreign institutional investors (FIIs) have raised their stake in Infosys in the September quarter despite the string of top-management exits from the Bangalore-based company during this period. According to data from exchanges, FIIs have marginally increased their shareholding in Infosys by 38 bps to 39.93% from 39.55% in the previous quarter.

Foreign brokerages expect Infosys to improve its revenues, going forward. “We see Infosys working on its cost structure in the near term. Improving demand should help in revenue recovery by late FY14,” JP Morgan analysts said in a research note. The counter has gained 20% in September quarter, outperforming the benchmark Sensex, which rose 3.9% during this period.

The France-based BNP Paribas upgraded the stock to buy from hold. “Despite Infosys' recent struggles, we believe an uptick in demand, renewed focus on traditional service lines and cost initiatives will lead to revenue growth stabilising and currently depressed quarterly margins recovering," BNP Paribas analysts said in a research note.

Infosys, which announces its Q2 earnings this Friday, has seen key personnel quit the organisation recently. Sudhir Chaturvedi (vice-president), Basab Pradhan (global sales head) and Ashok Vemuri (global head of manufacturing and engineering) have all resigned during this period.

However, domestic institutional investors (DIIs) have reduced their positions in the $28-billion company — bringing down their holding by 212 bps to 16.16% from 18.28% in the previous quarter.

Ads by Google

More from Money & Funds

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...