Difficult for Infosys to breach valuation in long term; prefer TCS: Pankaj Pandey

In a chat with ET Now, Pankaj Pandey, HoR, ICICIdirect.com, shares his views on Infosys.

ET Now: For those who are planning to buy Infosys or for those who own Infosys, are they simply taking a leap of faith with the assumption that after Vishal Sikka, things would change 180 degree for the company?

Pankaj Pandey: Our sense is that over the next one or two years, it is difficult for Infosys to breach the valuation as well as the growth differential with the TCS. So our preference again would go with TCS because TCS has been riding comfortably about 16 per cent kind of a forward growth whereas it will be trading somewhere about 20 times. Now Infy has guided for 6 per cent to 9 per cent which the Street or we would also want to believe that might inch up to 11 per cent to 12 per cent and the stock is trading somewhere about 15-16 times. So would still like to believe that they are still in the medium term at least the Infy may not be able to sort of bridge the growth as well as the valuation differential. Going forward post two years things remain to be seen. But as of now we do not expect anything and which is why our preference again would be with TCS.