Of the top four players, Wipro is down 24.8 per cent, Infosys Technologies has shed 18.58 per cent, TCS is lower by 14.57 per cent and Satyam Computers has weakened by 10.88 per cent compared with the price levels as on January 1, 2007.
A wise investor on Dalal Street remarked, except in a monopoly market where in the world is 30% margin maintained, history indicates the same. When IBM’s margins are around 10%, how long can Infosys maintain 30%.
BTW these articles are dedicated to my Infosys friends, who today, are behaving exactly like my Intel friends in 1997. Intel a true monopoly, with margins of 50% plus, could do no wrong, stock reached an all time high of 75 in 1999 and has languished between 13 and 35 since then. Yesterday’s close was 25.76