Infosys Technologies Ltd. (INFY)

All Comments on INFY

  • commenter
    Nitin
    Singhal
    Apr 18 06:51 AM
    India's Exploding Real Estate Market: Shades of the Florida Condo Bubble [view article]
    Dear Anshu and all other contributors,

    One would like to bring to your attention a few facts:
    Real estate in Mumbai has seen a climb of over 200% in last 2 years !!!
    Is it manageable? Well it depends from whose eyes you see it.

    For an investor who bought into the property during pre-launch and launch, well yes. For an example : We offloaded our stocks at our Vile Parle project as low as 2300/sq ft and averaged 6500/ sq ft in toto. Now the current prices hover around 12000/ sq ft to 14000/ sq ft. These are unaffordable to the masses. Due to un affordability, the option of rentals have struck the chord. Rentals per sq ft are at 50/month or 600 per annum. Considering average returns on average prices sold at, the investor makes cool close to 10% on the residential property today...

    We can argue that the correction would take place as the investors need to liquidate. Well as for one's investors, they are renting it out and have decided to leverage on bank loan for 25 years to invest in other property we are developing.

    It all depends at what level of development we get in. We always make profit when we buy not when we sell...

    Second example: We are developing a 100 acre Holiday Home cum Resort at Karjat. As off now the land is undervalued. Why one says that is that Land at Panvel which is barely 25 km from Karjat is selling around 1200 / sq ft at the lowest whereas at Karjat we are picking it up for 6,00,000 per acre!!!

    Now the infrastuctural development cost is higher than the land cost. Its pure value addition that drives the valuation and not land prices which is basic raw material.

    We are offering land holding benefits to our initial investors. That means that they get benefit that they would have as holders of raw clear title land. This is what is the best model for retail investors serious about real estate. Value creation in pure financial terms is 3.5x in 5 years. Real estate is a patience game. You can't short in real estate. At most you can flip properties. That calls you to be a real estate player. But, contrary to the belief many hold in India, real estate must be sold for its rental returns rather than appreciation. You must be clear that you are participating in value creation right at the bottom and not be a consumer who buys it at market price.

    Happy investing....

    Thanks and regards,
    Nitin Singhal     Reply
  • commenter
    manuvns
    Apr 16 04:05 PM
    With Decent Infosys FYQ4, Indian Outsourcing Stocks Look Higher [view article]
    infosys looks like a good long term bet in IT stocks Reply
  • commenter
    Kiran
    Apr 15 06:23 AM
    India's Exploding Real Estate Market: Shades of the Florida Condo Bubble [view article]
    Good Analysis! I totally agree. I come from south India-Hyderabad and situation is very much the same, if not worse. Reply
  • commenter
    Mohan
    Apr 14 05:21 PM
    My Website
    Time for India's Outsourcers to Focus on SMB Client Segment [view article]
    This is an interesting argument though not really radical. The larger service firms go after larger clients (Global 5000, Fortune 500 etc) for a reason: economies of scale. The SMBs are served by niche players, possibly SMBs in service sector themselves.

    Again, examples of big fish entering smaller ponds or the vice-versa are not hard to find either.     Reply
  • commenter
    ani
    Apr 12 12:07 PM
    Seeking Alpha in Indian Real Estate [view article]
    Mariya, keep you money you will witness a break down in cochin real estate market as these builders and brokers manipulated the common man for 2 years. Now it has come to a stage where these builders on going projects are almost dead!! After the sub prime banks are very much critical about the applicants repaying capacity. Inflation will really squeese the average person who invested in realestate because these people spend 80% income for repayments.

    wait and see...there is Ups and down. I have witnessed same fate years back where builders pushed the apartment with huge loss!
    Reply
  • commenter
    TechTech
    Apr 07 11:47 AM
    The Coming Death of Indian Outsourcing? [view article]
    Agreed - wages are increasing 15%, are the billing rates increasing the same amount? No.
    Whatever maybe the wage increase at offshore, what matters to US customers is the billing rate. As long as that is not catching up with US rates, it will not be a problem to US customers.
    Which makes maintaining profitability a headache only for the Indian companies. The leadership in these companies need to come up with better ideas to offset that.     Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:16 AM
    My Website
    General Discussion on INFY
    Is this a buy or a sell? Reply
  • commenter
    concerned
    indian
    Apr 06 01:58 AM
    My Website
    India's Exploding Real Estate Market: Shades of the Florida Condo Bubble [view article]
    Indian real estate market is in a big time bubble. Read more about it at indiarealestateforum.c....

    1 crore apartment will fetch rent far below than what interest on that 1 crore will get you. There is no denying that the indian property bubble will crash hard.     Reply
  • commenter
    User 172866
    Apr 04 08:54 AM
    Time for India's Outsourcers to Focus on SMB Client Segment [view article]
    There are many companies that have already started following this approach. The Outsourcing world has more often concentrated on the Fortune 1000s. It's time that the fruits of this tree be shared with the SMB segment as well. Reply
  • commenter
    BIG BULL
    Apr 02 05:13 AM
    The Coming Death of Indian Outsourcing? [view article]
    Important is stock valuation of Indian IT companies, which is ROCK BOTTOM now, this is a BUY call !!

    Do not get in the trap of some sensational stories like this.

    Reiterate - BUY CALL     Reply
  • commenter
    David
    Hepworth
    Mar 26 08:05 PM
    My Website
    India Fund Roundup (IFN, IIF, PRASX, ETGIX) [view article]
    After unprecedented gains over the last five years, the Sensex hit 20,000 only to decline in forty days to 16,000. Volatility has certainly become global! Reply
  • commenter
    sa
    Mar 24 03:44 PM
    Indian Outsourcers Fight Back Against Presidential Candidates [view article]
    Our economic development has been based on free trade in which we have sold hundreds of billions of dollars of goods including airplanes, computers, and Cokes to the developing world. Now that the dollar has declined once again exports will lead our economy out of this slump. First, it would be unethical to continue to push developing countries to open markets while at the same time erecting barriers to free trade. Second, large companies that outsource gain competitive advantage against there European and Japanese competitors therefore bringing greater prosperity to the US.
    Reply
  • commenter
    pricepoint
    Mar 20 12:35 AM
    My Website
    India’s Labor Arbitrage Strategy [view article]
    Agree that India cannot sustain 15% hike but it is not that Indian companies behind it but it is the market demand. This increase is also trickling down to other sectors such as Real Estate and Services in India. Once the IT development centers in Eastern Europe and South America catch up with Indian IT salaries, Indian IT firms will have rethink but as of now they still hold the EDGE. Reply
  • commenter
    Big Time
    Consulting
    Mar 17 11:05 AM
    The Coming Death of Indian Outsourcing? [view article]
    Seven years of outsourcing experience here, with one of world's largest outsourcing organizations.

    My personal experience:

    1. The quality of deliverables to large organizations from outsourced Indian engineers is lower than quality of onshore deliverables created by US programmers, mostly due to communication issues, infrastructure issues, and extremely high turnover among Indian personnel as they job hop in pursuit of ever-higher wages and a mythically ever-more-creative job. (As ITECO mentioned, most outsourced jobs have such narrowly defined requirements that good programmers hate them)

    2. In an outsourcing deal, the quality and speed of real-time problem investigation and remeditation for critical problems is much, much, much poorer with offshore personnel due to communication issues, infrastructure latency, and lack of experience among Indian programmers.

    3. The incentive to use offshore programmers is strictly due to wage difference, especially for legacy systems which require skills which simply do not exist in India (or elsewhere).

    4. Recession will indeed force CIOs to pinch every penny, which means retaining, instead of rewriting legacy systems. This will not help the offshoring business.

    5. There are plenty of qualified US software engineers available to meet a resurgent demand for onshore programming, but they will be competing with programmers in the Phillippines, and in China, whose wages still significantly undercut Indian wages.

    6. There will be pressure to reduce the onshore executive overhead costs that are associated with outsourcing ontracts....non-contri... senior executives will need to be eliminated to reduce costs.

    So, my assessment is that India loses, China and Phillipines win, although all offshoring generally slows as recession grows, and old systems are retained instead of being rewritten.

    Cheers.     Reply
  • commenter
    India RE
    Fund
    Mar 13 07:10 AM
    India's Exploding Real Estate Market: Shades of the Florida Condo Bubble [view article]
    If you'd like to short Indian RE, you could look into shorting the Indian REIT in Singapore, several listed AIM funds in London and variousexchanges around the world.

    I wouldn't suggest it though. India is overall coming from a low base and there is money in the Tier 1s to support those prices. However, I'd bet on the lower Tiered cities where there are 10-15 year growth cycles...in residential, hospitality, retail and perhaps commercial.     Reply
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