Q: Is it time to add to infosys and/or magna? What about adding to ntr.
5i Research Answer:
INFY is one of the largest IT companies in India, the company is trading at 28x Forward P/E, while growth is expected to be around 9% over the next few years. It is a high-quality name, but we think GIB.A and ACN offer better value in terms of risk/reward.
While we continue to like NTR and MG, and both are high-quality names in their own industries, these names have been experiencing a cyclical downturn over the last few years. We think investors are better off waiting for the cycle to turn and sacrificing some of the initial upside rather than trying to time the turnaround in cycles.