Second Trip to the Altar
Infosys Limited (INFY) provides IT services in business consulting, technology, engineering and outsourcing services. Infosys is based in India and has 156,000 employees.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'INFY'" symbolprices="190" div_align="right"]
Infosys is an excellent company and it may go higher than our exit price. However, we entered when it was a low risk proposition and we will wait for another such opportunity to present itself. Note that we first bought INFY in 2012, sold in 2013 and had made 21%. With today’s gain, we have realized a healthy profit while having a low risk exposure.
The Purple Chips valuation range is: LOW $53, HIGH $67
HIGH VALUATION IN INFOSYS AT $USD 66.80 (INFY, $66.75) FULL POSITION
TOTAL RETURN (no dividends) +29.3%
PURPLE CHIPS TARGET: $190.00 POSITION SIZE: HALF (2.5) P/E: 21X DIV: 1.19 (1.79%) MKT CAP: $38B Cash: $5.0B RETURN ON CAPITAL: 34.4% EARNINGS YIELD: 7.2% 5 YR EPS Growth rate*:9.6% P/E/G Ratio: 2.2 EPS: $3.39 2015 EST.: $3.74 2016 EST.: $4.27
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
