Risk on Infosys piling up, TCS a safer bet: Harendra Kumar

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital shares his views on Infosys. Excerpts:

ET Now: What happens to Infosys now and would Balakrishnan’s exit make a material impact on Infy or would investors look at any dip as a buying opportunity?

Harendra Kumar: It is quite inexplicable why the stock keeps going up, despite all the exits in the management. The exits fundamentally, reflect that there is something wrong and the team that had built up Infosys does not exist now. So the investors are putting faith on something that they do not know.

We were exposed to each of these leaders and their method of working, in terms of the verticals that they manage and they are no longer there with the company, but the stock price continues to move up. The PE is getting into the uncomfortable zone at this given point of time.

This dichotomy therefore, I do not think we are in a position to reconcile yet. So my guess is that the risk on Infosys continues to pile up and TCS seems to be the safer bet from here on.