Buy into Infosys or TCS at any up move: Seshadri Bharathan, KSEMA Fincon Ltd
Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about the IT stocks.
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| Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about the IT stocks.
IT as a story would you play it or do you think there is still some amount of pressure that could be seen in these stocks?
If you look at some of the top IT companies be it Infosys, Wipro, TCS or HCL Technologies, they have anywhere between 22% to 27% exposure to European countries and in terms of cross currency pressures, Euro is down 9% to dollar and the UK pound is down around 4% to dollar in last one months’ time. Most of the Indian companies have billing in European countries in dollar and in pound form and vis-à-vis dollar and cross currency. I think these companies will get affected anywhere between 1.2% to 1.8% of their dollar revenue.
So I think that is already factored in the stock price of most of these companies and I think on any up move, investors should buy into Infosys or a TCS.
IT as a story would you play it or do you think there is still some amount of pressure that could be seen in these stocks?
If you look at some of the top IT companies be it Infosys, Wipro, TCS or HCL Technologies, they have anywhere between 22% to 27% exposure to European countries and in terms of cross currency pressures, Euro is down 9% to dollar and the UK pound is down around 4% to dollar in last one months’ time. Most of the Indian companies have billing in European countries in dollar and in pound form and vis-à-vis dollar and cross currency. I think these companies will get affected anywhere between 1.2% to 1.8% of their dollar revenue.
So I think that is already factored in the stock price of most of these companies and I think on any up move, investors should buy into Infosys or a TCS.
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