Sell calls on Infosys rise to 10 from 2 a year ago

Infosys, once considered the IT bellwether, has lost its premium valuation after a series of poor quarterly results. The country's second-largest IT player now trades at its cheapest one-year forward price earnings ratio in at least last six years based on its annual earnings guidance given in the June quarter of each of the respective years.



After touching a 52-week low of Rs 2,163, the stock closed at Rs 2,171, which translates into an FY13 forward P/E of 13.1. This is the lowest forward valuation of the stock sinice 2007.

The number of 'sell' calls from brokerages has increased to 10 from just two a year ago. In addition, only 34 analysts now recommend a purchase in the counter compared to 45 in July 2011.