Infosys and HCL Tech are strong bets in IT space, says Ajay Bodke, HOR, Prabhudas Lilladher.
Bodke told CNBC-TV18, "Depreciating currency will benefit some of the larger names in the IT sector. We are positive on the top four IT companies. More specifically on Infosys and HCL Technologies followed by TCS . I think in the medium-term we are also looking at the volume growth remaining between 15-17%. I am talking about in the next 12 month perspective."
He further added, "The mild recovery in America certainly is good news for almost all these companies. What we need to keep in mind is that maybe 2/3rds of the revenues of the top tier companies come from what they call the RTB business, the lights all kinds of a business and only 1/3rd of it comes from the discretionary part. So I think a moderate volume growth helping currency as well as sort of 2/3rds of non-discretionary kind of business would make us bet on some of the top tier IT names and obviously all of them have strong balance sheets. So even if the environment continues to remain not so positive in Europe, I think the IT companies should be able to tide over the crisis pretty well."
