Gold Silver Reports (GSR) – Indian IT Companies Are Ageing, Says Aswath Damodaran — “Indian IT companies are not dying, but ageing”, and companies like Infosys Ltd. need to come to terms with that, Damodaran, adding that only some companies will be able to adapt to the changes.
Damodaran’s views seem to resonate with Infosys’ new CEO Salil Parekh who recently said the company urgently needs to make investments into new technology such as the Internet of Things and employee re-skilling to stay relevant to its clients.
The rest of India’s IT companies which are yet to reveal their results, are expected to grow at steady rates. The sector itself has outperformed the overall market at 31.87 percent, compared with India’s benchmark Nifty 50 Index’s 15.85 percent over the last 12 months.
Damodaran went on to speak about the ‘return of volatility’ in the global markets, India’s consumption stocks and the ‘big market delusion’, and his expectations from the FANG – Facebook, Amazon, Netflix and Google – stocks.
