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FY19 guidance by Infosys and HCL Technologies, and next quarter guidance by Wipro will also be the key metrics to watch out for
CIMB retained its overweight stance on Infosys & Tech Mahindra as both are its preferred large cap picks.
We expect Tech Mahindra to deliver 0.7 percent constant currency revenue growth and Cross currency would be a headwind of 100 bps for the quarter, said Prabhudas Lilladher
Net Sales are expected to increase by 4.1 percent Q-o-Q (up 13.3 percent Y-o-Y) to Rs. 8,618.6 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 4 percent Q-o-Q (up 13.1 percent Y-o-Y) to Rs. 8,604.7 crore, according to Motilal Oswal.
HSBC has a Buy call on Infosys with increased target price at Rs 880 from Rs 830 per share earlier.
Acceleration of the overall industry’s constant currency revenue growth in Q1FY2019 validates our earlier conviction on better revenue growth for the industry in FY2019E compared to FY2018 with TCS, Infosys, HCL Tech and Tech Mahindra being the preferred picks.
Net Sales are expected to increase by 1.4 percent Q-o-Q (up 11.3 percent Y-o-Y) to Rs. 8,166.3 crore, according to Edelweiss.
Net Sales are expected to increase by 2.1 percent Q-o-Q (up 12.1 percent Y-o-Y) to Rs. 8,225 crore, according to HDFC Securities.
Accenture’s robust Q318 results along-with persisting double digit growth in outsourcing revenues further bolsters confidence, the report further added.
Net Sales are expected to increase by 2.6 percent Q-o-Q (up 6.4 percent Y-o-Y) to Rs. 7977.7 crore, according to Edelweiss.
Net Sales are expected to increase by 3.1 percent Q-o-Q (up 7 percent Y-o-Y) to Rs. 8,015.9 crore, according to Motilal Oswal.
Net Sales are expected to increase by 2.9 percent Q-o-Q (up 6.7 percent Y-o-Y) to Rs. 7,998.3 crore, according to Kotak.
Majority of brokerage houses remained positive on the stock and expect the stock to give up to 22 percent return in next 12 months.
Tech Mahindra has posted a strong quarter. In an interview with CNBC-TV18, Ravi Menon of Elara shared his views and readings on the same as well as on some of its peer companies.
EBIT margin is expected to be expanding 90 basis points at 11.9 percent for the quarter against 11 percent in previous quarter.
CLSA has reduced its growth expectations for Wipro, TCS & HCL Technologies, and lifted expectations for Infosys.
CNBC-TV18’s Kritika Saxena caught up with Vineet Nayyar, Executive Vice Chairman of Tech Mahindra. He believes that the company will see growth in both their communication and North America business.
EBIT margin is likely to expand to 10.5 percent in Q2 from 9.4 percent in Q1FY18, driven by benefits of lower visa costs, cost rationalisation and cross currency tailwind.
Net Sales are expected to increase by 3.7 percent Q-o-Q (up 6.1 percent Y-o-Y) to Rs. 7604.3 crore, according to Kotak.
For Infosys, BofA-ML expects sequential revenue growth of 3.2 percent on a QoQ basis on a constant currency basis and 4.4 percent QoQ in USD terms, aided by strengthening EUR, AUD and GBP during the quarter.
Motilal Oswal has maintained buy rating on the stock, with a target price of 490, implying an upside of 26 percent.
Wipro Q1 FY18 earnings beat expectations but guidance disappointed the street- the board has also approved a Rs 11,000 crore buyback. In an interview to CNBC-TV18, Sandip Agarwal of Edelweiss Financial Services shared his readings and outlook on the same.
Net Sales are expected to decrease by 3.7 percent Q-o-Q (up 4.3 percent Y-o-Y) to Rs 7215.9 crore, according to Edelweiss. Tech Mahindra to report net profit at 598.1 crore up 1.7% quarter-on-quarter.
Net Sales are expected to increase by 1 percent Q-o-Q (up 10 percent Y-o-Y) to Rs 7599.8 crore, according to KR Choksey. Tech Mahindra to report net profit at 841.4 crore down 2% quarter-on-quarter.