Company is facing tough times due to high unemployment in theUS though it is not seeing any project cancellations
Sixty-five per cent of the total business is from the US
Cash & cash equivalents are Rs 18,536 crore as on 30Sep2011
Total employees are 1,41,822 as on 30Sep2011
For the full year 2011-12, the management has hiked its revenueguidance in rupee terms to Rs.33,501-Rs.34,088 crore, as against itsprevious guidance of Rs.31,777-32,311 crore, indicating a growth of21.8-24.0 per cent year-on-year, as against its earlier guided growthof 15.5-17.5 per cent year-on-year. The management has also raisedits EPS (earnings per share) guidance to Rs.143.02-145.26, asagainst its previous guidance of Rs.128.20-130.08, showing anincrease of 19.7-21.6 per cent y-o-y, as against its earlier guidedgrowth of 7.3-8.9 per cent y-o-y.
The current market price of the stock is Rs 2,700 as the close of 13October 2011 when the Sensex closed for the day at 16,884 and Niftyat 5,078. The forward P/E for FY2011-12 ratio works out to 18.60.Though the company is cautious about the uncertain globalenvironment, investors can bank on the blue chip company’s sharewhile keeping a close watch on the dollar-rupee exchange rate andglobal developments. The company is strongly placed to weather theglobal head winds and is expected to provide decent returns.The current performance trend of the company indicates that it willget revenue boost from large orders going forward. The company’smargins too are likely to improve in the next few quarters due partly tothe rupee depreciation against the dollar.
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Note on author: Author is an investment analyst and writer. The views are personal and this is written only for information purpose. The author has a vested interest in the stock markets. Readers are advised to consult their certified financial adviser before taking any investment decisions.