The quarterly results season is set to start next week. The Q3 season will be kick-started by the Indian IT giant Tata Consultancy Services (TCS) followed by other IT giants. Ahead of these, multiplied analysts have given their take on how the companies must have performed in the quarter.
Motilal Oswal expects Indian IT companies to see growth in its margin. The broker said that the salary expectations of employees have cooled off and the attrition rates have likely moderated due to an easing supply situation. That should show in the margins.
“One had expected a stronger margin performance due to a lack of material cross-currency headwinds in the quarter. The pressure will come from weaker-than-expected revenue growth, lower utilization due to higher furlough, the tail-end of wage pressures, and higher travel and marketing spending,” said Nomura.
Tata Consultancy Services Limited
The shares of Tata Consultancy Services were trading 3 percent lower on Friday afternoon at Rs 3,206 levels. The stock has been on a downtrend and shed approximately 16 percent in the last year.
The company is set to publish its quarterly result next week on January 9th, 2023. BNP Paribas is bullish on the stock and has assigned a ‘Buy’ rating with a target price of Rs 3,860 which is a 20% upside from the current levels.
Tata Consultancy Services (TCS), part of the Tata group, is the second-largest Indian company by market capitalization and is among the most valuable IT service brands worldwide. It provides information technology (IT), business solutions, and consulting services.
Infosys Limited
The shares of Infosys were traded 2 percent lower on Friday afternoon at Rs 1,453 levels. In the last year, the stock has shed approximately 20 percent. Currently, it is trading at a discount of 25 percent from its yearly high of Rs 1,953.90.
The company is set to publish its quarterly result next week on January 12th, 2023. BNP Paribas is bullish on the stock and has assigned a ‘Buy’ rating with a target price of Rs 1,760 which represents an upside of 21% upside from the current levels.
Infosys Limited is an Indian multinational information technology company that provides consulting, technology, outsourcing, and next-generation digital services to enable clients to execute strategies for their digital transformation.
HCL Technologies Limited
The shares of the IT company traded 1 percent lower at Rs 1,032 levels on Friday afternoon. In the past month, the stock has declined by 8 percent and in the last year the stock shed 20 percent.
The company is set to publish its quarterly result next week on January 12th, 2023. BNP Paribas is bullish on the stock and has assigned a ‘Buy’ rating with a target price of Rs 1,170 which represents an upside of 13% upside from the current levels.
HCL Technologies Limited is an Indian multinational information technology (IT) services and consulting company that offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering, R&D services, and BPO.
Wipro Limited
The shares of the company shed 1.2 percent to trade at Rs 382 levels on Friday. The stock has shed 6 percent in a month and approximately 47 percent in the past year.
The company is set to publish its quarterly result next week on January 13th, 2023. JM Financial has a buy rating on Wipro with a target price of Rs 480 per share which represents an upside of 26 percent from the current price.
Wipro Ltd is an Indian multinational corporation that provides cloud computing, cyber security, digital transformation, artificial intelligence, robotics, data analytics, and other technology consulting services.
Written by Anoushka Roy
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