Peter Bendor-Samuel, CEO of US-based Everest Research, said Infosys is under pressure to conduct a significant share buyback due to slowing growth. However, even a significant share buyback would probably only drive modest EPS (earnings per share) accretion, he said.
“What a big share buyback will do is limit the investment available to drive the already flagging rotation to digital strategy. All of Infosys’ future organic growth is dependent on them succeeding in this rotation and head winds due to lack of ability to invest or acquire digital firms will raise concerns with the long term shareholders about Infosys ability to lead in the new digital area,” he said.
