Kotak Securities analysis of relative revenue, EBITDA, net income, and market cap market shares of the top-5 Indian offshore names reveals a rather sobering story for Infosys – it has lost leadership on all these counts.
More importantly, (1) its relative market share across all these parameters is at multi-year lows, and (2) bulk of the decline has happened in the past two years. The jury is still out on whether this is a temporary dislocation or a structural damage. Kotak believes it is temporary and expect a trend reversal in the coming quarters.
TCS – flying high
TCS has delivered a remarkable turnaround in its relative operational performance over the past 2+ years – its relative market shares on EBITDA and net income market share have jumped to all-time highs from all-time lows hit in March 2009 quarter.
Wipro – consistent underperformer
Wipro has also hit all-time lows on relative market share metrics across parameters. However, in case of Wipro, relative underperformance is not a recent phenomenon – recent dips only follow a long-term trend of relative market share loss.
