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00:00Sandeep Agarwal is joining us for this.
00:01He's fund manager and co-founder
00:03of Sovelo Investment Manager.
00:05Sandeep, very good morning to you.
00:06Straight off the bat, the big question really is
00:09that how big a hit is this for Infosys,
00:12considering that the company has responded also
00:14fairly quickly saying we've paid all our taxes
00:16and we'll take this legal process forward.
00:19Hi, good morning and thanks for having me on the show.
00:22I have been tracking the IT sector for now 22, 23 years
00:25and I can tell you with reasonable confidence
00:28that generally all of these large names
00:31like Infi, TCS, Wipro, they have been very, very compliant.
00:35Now, there could definitely be an interpretation issue
00:39or something like that because of which
00:41this kind of things can happen.
00:44And I believe, although I'm neither a lawyer
00:48nor I have an understanding on the legal side,
00:49but I can say that investors trust Infosys
00:53and they believe that they will do the right thing
00:55and whatever is required will be done.
00:57Infosys is a company which will never shy away
01:00from paying the right dues if required.
01:02So I don't think there will be an impact on the stock.
01:05I don't see this as a reason to have a big impact.
01:08Obviously, you know, two, 3% negative reaction
01:11from people that could be there,
01:13but I don't see this as a ground
01:16for any kind of reaction on the stock.
01:18They have always been compliant.
01:20If there is a, because the earlier GST expert
01:24was saying that this opens the Pandora's box
01:26for similar verdicts on some of the other companies too.
01:29If by any chance this brings about a reaction,
01:32you in your assessment would be,
01:34would you go out and invest into
01:37or take advantage of that dip?
01:40So, you know, we don't invest based on 3%, 4% reaction.
01:44Of course.
01:45We have our ideas, but-
01:46Sandeep, Sandeep, the reason I ask this
01:48because I remember you earlier saying
01:50that you would turn constructive on IT, right?
01:52So dips could be used to buy into,
01:54which is what I was asking.
01:55Yeah, so we have our own financial models
01:57based on which we do buying and selling.
01:59So there are different parameters,
02:00but let me put it this way.
02:02If it opens up like the previous spokesperson spoke
02:06and truly, then obviously, you know,
02:08it will have an impact on the whole sector.
02:10So then the whole sector will have some earnings cut
02:12and all those things will happen.
02:13So it is not specific to then Infosys
02:15because everyone is in similar business.
02:18Everyone has branch office and every kind of,
02:20more or less the models operating for everyone is similar
02:23because you have to execute business in a particular way.
02:26So I believe that, you know,
02:28if there is a knee-jerk, very sharp reaction,
02:30then obviously it is a very good opportunity.
02:32The upgrade cycle and the earnings have started.
02:34So I think it is a good opportunity
02:35for people who have missed the stock earlier.
02:38They can obviously, you know,
02:39use this as an opportunity to enter.
02:41So that is a view.