Today, when Infosys hit a 3 year high of Rs. 3,464, you realize that Narayana Murthy is really the smartest of them all and why he deserves all those billions that he has made. When he saw that Infosys was not being properly managed and was totally beleaguered from all sides, he came back from retirement and took over the reins.
At that time I had correctly predicted “Narayana Murthy Net Worth To Surge After Re-joining Infosys”. Unfortunately, that prediction was worth nothing because I did not have the sense to buy the Infosys stock which was then quoting at Rs. 2400.
Since that day (2nd June 2013), Infosys has surged 45%. On a YOY basis, the stock has given a 51% return.
The biggest beneficiary of Narayana Murthy’s brilliance is Narayana Murthy himself. He and his family hold a staggering 2,57,50,526 shares in Infosys that is worth – hold your breath – Rs. 9012 crore. This means that in the 6 months that he is in Infosys, he has made himself an incredible Rs. 2800 crore.
|Name||Nos of shares held||Market Value as of 01.06.2013||Market Value as of 16.12.2013|
|N R Narayana Murthy||23,79,672||574 cr||833 cr|
|Sudha N Murty||73,14,660||1,763 cr||2,560 cr|
|Akshata Murty||81,06,412||1,954 cr||2,837 cr|
|Rohan Murty||79,49,782||1,916 cr||2,782 cr|
|Total Value Of Shares Held In Infosysby Narayana Murthy & Family||6,207 cr||9012 cr|
It is notable that all the large cap I. T. stocks have done exceedingly well. HCL Tech has given a 88% YOY return, Tech Mahindra has given a 84% YOY return, TCS has given a 62% YOY return and Wipro has given a 40% YOY return. Among the mid-caps, Persistent Systems has given a 86% YOY return. The list goes on.
The best part is the good times will continue. N Chandrasekaran of TCS has said that the FY 2014-15 will be better than the ongoing fiscal year on account of uptick in client spending in the US and Europe and growth in demand for technologies like cloud, mobility and Big Data. He also said that momentum is picking for social, mobile, analytics and cloud (SMAC) technologies, which offer a “multi-billion dollar opportunity” in revenues for the company in the next 3-5 years. Also, BofA-ML has predicted that Infosys is heading towards Rs 4,000 levels. The given target price is based at 18.5x forward PE (12 months ending Mar 2015E). This is at 15 per cent discount to peer TCS given volatility in earnings and relatively slower growth.
So, are you going to be buying Infosys or TCS or HCL-Tech or any of the other I. T. companies?