Infosys drops out of India’s top 10 most valued companies

Mangalore Today News Network

Bengaluru, Aug 22, 2017 : Infosys on Monday crashed out of India’s 10 most valued companies’ list after the exit of Vishal Sikka as managing director and CEO of the company.

 

Sikka’s exit took a heavy toll on the company’s brand image as it lost Rs 34,000 crore in market capitalisation in the last two trading sessions.

In Monday’s trade on Bombay Stock Exchange, the company’s shares lost 5.37% to close at Rs 873.5 per share. As a result of this, shareholders lost another Rs 11,391 crore. The company’s m-cap on the close of day’s trading stood at Rs 2,00,640.07 crore, compared to Rs 2,12,030.96 crore on Friday.

The ten most valued companies’ list is based on the market capitalisation of Rs 2 trillion each. Infosys now ranks at the eleventh position as it is replaced in the top 10 by Indian Oil Corporation Ltd with a total market capitalisation of Rs 2.01 trillion.

Currently, the list of top 10 most valued companies is led by Reliance Industries with a market cap of Rs 5.09 trillion. It is followed by TCS with Rs 4.83 trillion and HDFC Bank with Rs 4.49 trillion.

The other companies in the list include, ITC in the fourth position with Rs 3.44 trillion, followed by HDFC with Rs 2.77 trillion and Hindustan Unilever with Rs 2.58 trillion. Other companies on the list are SBI (Rs 2.37 trillion), MSIL (Rs 2.27 trillion) and ONGC (Rs 2.02 trillion).

Besides, JP Morgan downgraded the stock to neutral from overweight and slashed target price to Rs 905 from Rs 1,075 per share, and downgraded it to neutral from outperform.

According to analysts, the company’s stock value will further slide. "The company’s board on Saturday approved the share buyback plan of up to Rs 13,000 crore to reward shareholders. Even this didn’t enthuse investors," said an analyst.

Motilal Oswal predicts that there could be 12-18-month disruption in business from the ongoing episode, which may lead to loss of market share to peers. "Big guns Accenture, TCS and Cognizant will make that extra push to lure clients away from Infosys," Motilal Oswal said.

Sikka’s exit takes toll

Infosys loses Rs 34k crore in market capitalisation in last two trading sessions

On Monday, company’s shares lost 5.37% to close at Rs 873.5 per share

As a result, shareholders lose another Rs 11,391 crore

Company’s m-cap on the close of day’s trading stood at Rs 2,00,640.07 crore

Infosys pushed to eleventh position. Replaced by Indian Oil Corporation Ltd



courtesy:DHNS