A rally in IT stocks kept benchmark indices on a higher note for the second consecutive day. While the S&P BSE Sensex was up over 750 points and closed the day above 73,300 levels, the NSE Nifty 50 was up 160 points and closed the day above 21,400 apiece.
Indian IT companies have started releasing their Q3 results for the period of October to December 2023. TCS, Infosys, HCL Tech, and Wipro are among the major companies that have released their Q3 results, with announcing results above the expert’s expectations.
Listed below are the stocks that fall under the IT sector with a potential upside of up to 18 percent:
Infosys Ltd
With a market capitalization of Rs. 6,84,824 crores, the shares of Infosys Ltd started Monday’s trading session on a higher note at Rs. 1,644.95 compared to its previous close of Rs. 1,612.75. The shares hit a high of Rs. 1,644.95, gaining around 3 percent, also recorded as the company’s fresh 52-week high and closed the day at Rs. 1,652 apiece.
Motilal Oswal one of the well-known brokerage firms has given a ‘Buy’ target on the company’s stock with a target of Rs. 1730 indicating a potential upside movement of around 5 percent compared to its current market price.
According to the latest financial statement published by the company, the revenue decreased marginally by around 1 percent from Rs. 38,994 crores during Q2FY24 to Rs. 38,821 crores in Q3FY24. In addition, the net profits decreased by around 2 percent from Rs. 6,215 crores to Rs. 6,113 crores during the same timeframe.
Despite the near-term weakness, the brokerage firm expects Infosys to be a key beneficiary of the acceleration in IT spending in the medium term (led by improving discretionary spending and ramp-up of mega deals).
Tata Consultancy Services Ltd
With a market capitalization of Rs. 14,27,908 crores, the shares of Tata Consultancy Services started Monday’s trading session on a higher note at Rs. 3,960 compared to its previous close of Rs. 3,882. The shares hit a high of Rs. 3,965, gaining around 3 percent, also recorded as the company’s fresh 52-week high and closed the day at Rs. 3,903.80 apiece.
Motilal Oswal one of the well-known brokerage firms has given a ‘Buy’ target on the company’s stock with a target of Rs. 4250 indicating a potential upside movement of around 9 percent compared to its current market price.
According to the latest financial statement published by the company, the revenue increased by around 1.5 percent from Rs. 59,692 crores during Q2FY24 to Rs. 60,583 crores in Q3FY24. On a contrasting note, the net profits decreased by around 3 percent from Rs. 11,380 crores to Rs. 11,097 crores during the same timeframe.
Despite a weak demand environment and seasonal weakness, the broker mentioned that the company recorded results above their estimates, this growth was aided by strong India performance (up 26 percent QoQ, partially aided by BSNL deal execution) and TCS reported deal wins of USD8.1billion (down 28 percent QoQ but up 3 percent YoY, book-to-bill ratio at 1.1x), which is according to the broker expectations.
HCL Technologies Ltd
With a market capitalization of Rs. 4,30,984 crores, the shares of HCL Technologies started Monday’s trading session on a higher note at Rs. 1,610 compared to its previous close of Rs. 1,540. The shares hit a high of Rs. 1,619.60, gaining around 4 percent, also recorded as the company’s fresh 52-week high and closed the day at Rs. 1,588.20 apiece.
Motilal Oswal one of the well-known brokerage firms has given a ‘Buy’ target on the company’s stock with a target of Rs. 1880 indicating a potential upside movement of around 18 percent compared to its current market price.
According to the latest financial statement published by the company, the revenue increased by around 7 percent from Rs. 26,672 crores during Q2FY24 to Rs. 28,446 crores in Q3FY24. In addition, the net profits zoomed by around 14 percent from Rs. 3,833 crores to Rs. 4,351 crores during the same timeframe.
HCL Technologies (HCLT) delivered a robust Q3FY24 performance, with a 7 percent QoQ revenue growth in constant currency (CC) terms, which is ahead of the broker’s estimation of more than 4.4 percent. This growth was driven by seasonal gains in HCL Software (P&P), which rose 34 percent QoQ.
Written By Vaibhav Patil
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