Has Infosys stock finally moved past whistleblower allegations?

Infosys Ltd’s shares have steadily risen to around ₹800 apiece, higher than the ₹770-levels the stock was trading at before an anonymous whistleblower alleged serious misconduct by its top management.

As such, investors appeared to have moved past the worries over the allegations. Note also, that the company had provided a detailed rebuttal to each allegation when it announced its December quarter earnings last month.

Having said that, the Infosys stock is still carrying some scars from the episode. Its price-to-earnings multiple based on one-year forward earnings estimates was at a discount of 11-12% to the valuation of Tata Consultancy Services Ltd, before news of the allegations hit the Street. Despite the recent rally in the stock, its discount is higher at nearly 17%.