Buy Infosys, TCS, Tech Mahindra, HCL: BP Equities
BP Equities has come out with its report on IT sector. The research firm has remained overweight on the sector and has recommended buy rating for Infosys, TCS, Tech Mahindra, HCL Tech and hold rating on Wipro & Persistent Systems.
October 11, 2013 / 17:54 IST
BP Equities' report on IT sector
"Indian IT Sector has outperformed over the last 3-6 months – despite the overhang caused by 1) Introduction of the immigration bill by the US Senate 2) Salary hikes announced by all IT companies to curb inflation and bring down attrition and 3) Rising visa cost and rise in onsite hiring’s which is dragging margins. Sector outperformance was primarily supported by 1) Significant depreciation in INR 2) Improved economic data in key markets like US and Europe 3) Strong deal wins, robust environment for new deal wins, ramp up of existing projects and 4) improved commentary on discretionary spending from all major IT players. We believe still there is a lot of juice left in the sector as the recovery has just started in the west. TCS & HCL tech will continue to do well while sentiments will further improve with the participation of Infosys and Wipro in the performance club. We expect a P/E rerating for these stocks as performance improves and the whole sector will outperform for the next 12-18 month. Tech Mahindra remains the favorite P/E rerating candidate that could surprise positively on revenue growth versus industry and operating margin uptick. We remain overweight on the sector and has a BUY rating for Infosys, TCS, Tech Mahindra, HCL Tech and HOLD rating on Wipro & Persistent Systems," says BP Equities research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
