Take money off from Infosys, deploy in HCL, TCS and Tech Mahindra: Rahul Singh

In a chat with ET Now, Rahul Singh, Head of Research, Standard Chartered Securities, shares his views on Infosys.

ET Now: Could Infy turn out to be that bright spot or do you think all the positive is already in the price?

Rahul Singh: We are not very optimistic about a sharp turnaround in terms of a mere management change in Infosys. What the company requires is a business model change. There will be confusing signals coming out of Infy over the next two to three quarters, in terms of the trade off between growth and margins.

Right now, the stock is in a fair-value zone. We would actually be advising clients to take money off Infy and deploy them in HCL, TCS and even Tech Mahindra, because the progress of recovery in Infosys, if at all, is going to be discontinuous rather than as a one straight line up, which is what the stocks seems to be imploying. However, we definitely think that would not be possible.