The country’s second biggest IT services company Infosys saw its shares tank Friday after it reported its earnings for the quarter ended March. The Infosys share price slumped over 8% to hit an intraday low of ₹1,305.
The Investment: On 22nd July 2013, Infosys was trading at ₹359.59. If your father had invested ₹10,000 in Infosys then, he would have bought approximately 28 shares of the company. Fast forward to today, the stock is valued at ₹1,336. This means that an investment of ₹10,000 a decade ago would be worth approximately ₹37,408, marking a significant increase in value.
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Background: The company’s recent Q1 earnings report and subsequent guidance cuts have not been well received by investors and analysts. The company’s consolidated net profits for the April-June period stood at ₹5,945 crore, up close to 11% from the ₹5,360 crore profit it booked during the same period last year. However, this was lower than consensus estimates. The company’s revenue for the quarter stood at ₹37,933 crore, up 10% year-over-year.
Analysts have expressed disappointment with the numbers and the weak guidance. Here are the latest analyst calls on the stock.
Price Action: Infosys’ share price was down 7.88% to trade at ₹1,335.30 in the mid-market hours of trading on Friday.
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