A lech for tech

While stock market pundits vary wildly on the future of infotech stocks are they over-hyped, and will they survive there comes a recent exercise from Business World, to indicate perhaps that there8217;s still life for Tech stocks. What the magazine8217;s done is simple. It8217;s taken the earnings projections for top infotech firms such as Infosys and Satyam, and calculated price-earnings ratios for them, based on current price valuations on the stock market.

Compared to previous periods, the price-earnings ratios for these tech stocks appear quite attractive. NIIT, for instance, had a P/E of 37 on January 1, 1999, this went up to 69 a month later, and then kept falling, to 56 on April 1 this year, to a projected 18 next year, based on current prices. Clearly, if NIIT is to attain projected growth, it8217;s a good stock to buy. Hence, there8217;s no harm retaining your lech for tech.