CLSA increases underweight on Infosys in model portfolio
Infosys had lowered its dollar revenue guidance to 10.5-12% in constant currency terms from its earlier forecast of 11.5-13.5% in July.
By ET Bureau | Updated:
MUMBAI: In its model portfolio rejig, CLSA India has increased its underweight stance on Infosys besides removing Grasim Industries and Lupin.
In a note to clients on Thursday, CLSA said it has increased its underweight stance of the information technology major by three percentage points due to continued employee turnover and cancellation of the RBS deal raising questions on its guidance for the current financial year.
Infosys had lowered its dollar revenue guidance to 10.5-12% in constant currency terms from its earlier forecast of 11.5-13.5% in July.
Grasim Industries has been replaced by Ambuja Cements as the merger deal between the company and Aditya Birla Nuvo has made it more of a conglomerate than a pure play in the cement space. Ambuja is among the least expensive plays among large-cap cement companies, said CLSA.
CLSA has also replaced Lupin with Cipla in the portfolio because of increased competition in key products.
Due to a better balance sheet clean up by Bank of Baroda over peers, CLSA has added weightage on the stock in its portfolio by three percentage points. The brokerage sees limited downside in the stock.
In a note to clients on Thursday, CLSA said it has increased its underweight stance of the information technology major by three percentage points due to continued employee turnover and cancellation of the RBS deal raising questions on its guidance for the current financial year.
Infosys had lowered its dollar revenue guidance to 10.5-12% in constant currency terms from its earlier forecast of 11.5-13.5% in July.
Grasim Industries has been replaced by Ambuja Cements as the merger deal between the company and Aditya Birla Nuvo has made it more of a conglomerate than a pure play in the cement space. Ambuja is among the least expensive plays among large-cap cement companies, said CLSA.
CLSA has also replaced Lupin with Cipla in the portfolio because of increased competition in key products.
Due to a better balance sheet clean up by Bank of Baroda over peers, CLSA has added weightage on the stock in its portfolio by three percentage points. The brokerage sees limited downside in the stock.
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