CLSA on Indian IT Sector: Brokerage Firm CLSA said 1QFY27 results were mixed for Indian IT companies and global systems integrators. The brokerage believes mid-tier IT vendors are better positioned to capitalise on tectonic shifts in the industry. It noted that AI volumes could offset the impact of deflation by FY30, supporting US$ revenue growth. However, CLSA highlighted a long gestation time and limited upside potential for the largest-cap IT stocks.
CLSA has downgraded Infosys to hold from outperform and raised its target price to Rs 1,147 from Rs 1,109. At the previous close of Rs 1,115, the current target price suggests an upside potential of 2.87 per cent.
CLSA has downgraded TCS to hold from outperform and raised its target price to Rs 2,326 from Rs 2,165. At the previous close of Rs 2,280, the current target price suggests an upside potential of 2.02 per cent.
CLSA has downgraded Tech Mahindra to hold from outperform and set a target price of Rs 1,634. At the previous close of Rs 1,592, the current target price suggests an upside potential of 2.64 per cent.
CLSA has downgraded Wipro to underperform from hold and cut its target price to Rs 152 from Rs 157. Structural concerns were cited for the rating downgrade. At the previous close of Rs 179.42, the current target price suggests an dowside of 15.28 per cent.
CLSA has downgraded Mphasis to underperform from hold and set a target price of Rs 2,113. Structural concerns were cited for the rating downgrade. At the previous close of Rs 2,432, the current target price suggests an dowside of 13.12 per cent.
The Nifty IT index is currently trading at 30,381.25, gaining 167.80 points or 0.56 per cent. The index had closed at 30,213.45 in the previous session and opened at 30,461.10. Trading volume stood at 68.01 lakh, while the traded value was Rs 989.03 crore.
The index recorded eight advances and two declines. The 52-week low and high stood at 25,699.10 and 40,301.40, respectively. The intraday low and high were 30,367.50 and 30,659.80, respectively.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
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