Despite Murthy's Return, Analysts Doubt Infosys Turnaround

Says Amar Ambani, head of research at IIFL, “Murthy’s re-entry into the organisation is a positive signal since the company’s fortunes have been on a downward spiral once he exited. Other companies in this space, like TCS and Cognizant have done quite well. Infosys, on the other hand, saw its margins and market share dip. I feel that the re-structuring at Infosys was overdue and the others at the helm could not have helped improve the situation”, reports Puneet Wadhwa and Aastha Agnihotri of Business Standard.

He further added, “However, one should not expect an immediate improvement in the financials. It will take at least three quarters for the company before any signs of an improvement are visible. We maintain a market-performer rating on the stock.”

Sanjeev Hota, assistant VP (research-IT) said that management evolutions at Infosys have taken place earlier too and Narayan Murthy’s come back is another such phase. He also said that though the change has brought new hopes yet the fundamentals of the company are doubtful. He further added, “I think there is further pain ahead. The kind of gains that we have seen on Infosys this morning is not sustainable and it will take time for Infosys to get back its glory.”

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