Infosys, Wipro among top 5 valuable companies
By agencies   |   Monday, 09 May 2005, 19:30 IST
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BANGALORE:Two Indian firms, Infosys Technologies and Wipro have been ranked fourth and fifth in a report on `The most valuable outsourcing companies' compiled by Global Outsourcing publication. "The ranking of 12 most valuable companies published in April 2005 issue of Global Outsourcing has IBM at the top with a valuation of more than $140 billion. ADP takes the number 2 place with market capitalization of $26 billion, ahead of Accenture ($23 billion), a company with almost double of ADP's revenue. The next two places are taken by Infosys and Wipro with a market capitalization’s of $19.9 billion and $14.6 billion, respectively," a release said here. Revenue companies such as EDS and CSC are ranked much lower at number 9 and 11 positions, respectively. The market capitalization figures are as on April 1, 2005, the statement clarified. "What is noteworthy is that all the offshore centric companies in the list - Infosys, Wipro and Cognizant - have a significantly higher P/E ratio than others in the list. In fact the average P/E ratio of these three companies at 54.4 is more than twice the corresponding figure for the rest of the companies in the list," it said. While analysts expect the Indian companies - which have much lower revenue figures and high market capitalization - to use their strength to acquire and grow big rapidly, the report reveals that it is unlikely that Indian firms would do acquisitions to grow rapidly. The report has ranked companies listed in the U.S. stock markets and whose revenues from services are significant (more than 40 percent of the total revenues) it said adding that therefore companies such as Tata Consultancy Services (TCS) have not featured in the list.

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