Bernstein, a subsidiary of AllianceBernstein, a global investment management firm, primarily focuses on providing research, investment advisory, and wealth management services to institutional and high-net-worth individual clients.
Recently, Bernstein has broadened its IT services coverage by incorporating engineering services firms renowned for their specialized expertise in the automotive and software sectors.
It has also initiated outperform ratings on selected midcap IT firms, highlighting specialist engineering services within the software and automotive industries, which Bernstein believes exhibit significant growth potential.
These companies have established partnerships with global leaders like Microsoft and Tesla, demonstrating strong management and sales capabilities. Global brokerage reported.
Bernstein’s emphasis on IT stock as a “Billion-Dollar Specialists” underscores their niche expertise and growth potential within the automotive and software engineering services sectors.
Below is a list of four IT stocks that Berseterin has given coverage
KPIT Technologies Ltd
KPIT is a global technology business that provides embedded software and product engineering services to automotive companies.
KPIT Technologies is a global leader in the business of software integration for the mobility industry, particularly focusing on the transformation towards Software Defined Vehicles (SDVs).
In a quarter-to-quarter comparison, operational revenue saw a notable uptick of 5%, rising from Rs 1,257 crore in Q3FY24 to Rs 1,318 crore in Q4FY24. Furthermore, net profit experienced a 5.8% increase, climbing from Rs 157 crore to Rs 166 crore.
The company’s share has delivered returns of 12 percent in six months and 60 percent in a year. Berseterin has given an outperform target of ₹2,120 per share with an upside of 24%.
On Wednesday, KPIT Technologies Ltd shares were quoted at ₹1,702 apiece, down 0.97 percent from the previous close price on the exchange. The company has a market capitalization of ₹46,805 crores.
Coforge Ltd
Coforge is an IT services company providing end-to-end software solutions and services. Coforge has made significant strides in the AI business, developing a range of AI products and services that showcase its commitment to innovation in AI technology.
The company has introduced two innovative AI platforms, Coforge Quasar, to support Enterprise AI capabilities and transform various aspects of organizational operations such as customer service, operations, research, sales & marketing, finance, and human resources through its cognitive and generative features.
Additionally, Coforge Ltd. introduced Coforge Orion, a Generative AI Platform. To harness the power of generative AI to deliver an autonomous self-service solution, with the objective of transforming the landscape of business-customer interactions.
The company’s revenue climbed by 14 percent year on year, rising from ₹8,015 crore in FY22-23 to ₹9,179 crore in FY23-24. During the same time period, net profit increased by 12 percent, from ₹745 crore to ₹ 836 crore.
The company’s share has delivered returns of 12 percent in six months and 60 percent in a year. Berseterin has given an outperform target of ₹6,080 per share with an upside of 6%.
On Wednesday, Coforge shares were quoted at ₹5,750 apiece, down 0.18 percent from the previous close price on the exchange. The company has a market capitalization of ₹38,330 crores.
Tata Elxsi Ltd
Tata Elxsi provides AI-based video analytics solutions designed to deliver accurate results by utilizing a complex web of deep learning models working in tandem. These solutions are tailored for industry-specific needs and are designed to simplify complexity for end-use
The company has created AIVA, a video analytics solution tailored specifically for the industry. exclusively for industries that use a complex web of deep learning models to deliver accurate results.
Tata Elxsi has introduced Autonomai, an autonomous driving platform to facilitate the creation, testing, and implementation of autonomous vehicles. Autonomai empowers the development and deployment of autonomous driving solutions across diverse transportation systems.
The company’s revenue climbed by 13 percent year on year, rising from ₹3,145 crore in FY22-23 to ₹ 3,552 crore in FY23-24. During the same time period, net profit increased by 5 percent, from ₹755 crore to ₹ 792 crore.
The company’s shares have yielded a negative return of 18 percent over the past six months and 6 percent over the past year. Berseterin has set an underperforming rate for a target price of ₹6,030 per share, indicating a potential downside of 13%.
On Wednesday, Tata Elxsi Ltd shares were quoted at ₹7,119 apiece, up 1.3 percent from the previous close price on the exchange. The company has a market capitalization of ₹43,695 crores.
Persistent Systems Ltd
Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. It has its software and frameworks with pre-built integration and acceleration.
Persistent has been named a Leader in the Everest Group Data and Analytics (D&A) Services for Mid-Market Enterprises PEAK Matrix Assessment 2023.
The company’s revenue climbed by 17 percent year on year, rising from ₹8,351 crore in FY22-23 to ₹ 9,822 crore in FY23-24. During the same time period, net profit increased by 18.6 percent, from ₹921 crore to ₹ 1,093 crore.
The company’s share has delivered returns of 27 percent in six months and 95 percent in a year. Berseterin has given an outperform target of ₹5,920 per share with an upside of 28%.
On Wednesday Persistent Systems Ltd shares quoted at ₹4,630 apiece, down 0.16 percent from the previous close price on the exchange. The company has a market capitalization of ₹71,389 crores.
Written by Omkar Chitnis
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