Stay away from Infosys at current levels: Pramod Gubbi

In a chat with ET Now, Pramod Gubbi, VP, Institutional Equities, Ambit Capital, shares his views on Infosys.

ET Now: Within the IT pack, Infosys, given the growth warning, slipped quite a bit, was that being seen as an opportunity to buy the stock?

Pramod Gubbi: Not yet. We have been quite negative on Infosys for the best part of four years now. Arrival of Murthy created some sort of optimism from the markets stand point in terms of his ability to turn it around whilst but we do not doubt his capabilities.

The problems with Infosys, we think, are far deep rooted, even exacerbated given the departures of some senior management team members over the last here or so. We do not think that these departures will go unnoticed.

So whilst we do not rule out ability of Mr Murthy to turn this around, we do not think it is a short term possibility. In the short term, we are likely to see more disruptions. So we would stay away from Infosys even at these levels, we will perhaps stay happy with at least TCS and HCL Tech.