Infosys: Buyback possible every two years, say analysts

The company has drawn flak from some key shareholders for not using the excess cash in its books

Ayan Pramanik 

At a time when returns from software stocks have been low, Infosys should look at buyback every two years to stimulate its earnings per share growth, say analysts.  The country’s second largest information technology (IT) firm is sitting on a large cash pile, with reserves of Rs 35,985 crore or $5.4 billion as on December 31.  “They should use the entire free cash flow generated per year through either dividend (payment) or a tender offer buyback every two years. It should help the company reduce the number of shares and improve earnings per share. ...

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Infosys: Buyback possible every two years, say analysts

The company has drawn flak from some key shareholders for not using the excess cash in its books

The company has drawn flak from some key shareholders for not using the excess cash in its books At a time when returns from software stocks have been low, Infosys should look at buyback every two years to stimulate its earnings per share growth, say analysts.  The country’s second largest information technology (IT) firm is sitting on a large cash pile, with reserves of Rs 35,985 crore or $5.4 billion as on December 31.  “They should use the entire free cash flow generated per year through either dividend (payment) or a tender offer buyback every two years. It should help the company reduce the number of shares and improve earnings per share. ... image
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