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by vmurthy
2427 days ago
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Infosys had a reputation as one of India's most transparent companies. Reputation is somewhat a nebulous concept so I am going to use a proxy: P/E ratio [1]. According to theory, investors pay up a premium PE for well managed companies and although it is an imperfect measure, lots of evidence suggests that it works (Look up HDFC Bank in India relative to its peers or government owned companies v/s their private counterparts)
In India at least, Infosys had always had a premium PE compared to its peers [2]. So the "pristine brand" may have been with the investors. [1] https://www.macrotrends.net/stocks/charts/INFY/infosys/pe-ra... [2] https://www.motilaloswal.com/article.aspx/1202/How-and-Why-t... |
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