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Journalism of Courage
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 there’s still life for Tech stocks. What the magazine’s done is simple. It’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, it’s a good stock to buy. Hence, there’s no harm retaining your lech for tech.
