IT SECTOR
JPMORGAN ON INDIAN I.T. : 08.02.2022
* Infosys, Mphasis, Tech Mahindra remain top Overweights in Indian I.T :
* Upgrade Mindtree to Neutral from Underweight
* Downgrade TCS to Neutral from Overweight
* Indian techs have de-rated YTD led by the global tech sell-off
• NSE IT down 11% (vs NIFTY down 1%), its P/E has de-rated
* Realign target multiples to bake in a rise of cost of capital
* TCS has outperformed peers, limiting further potential upside
* Mindtree underperformance vs sector YTD brings it close to fair value
• Continue remain constructive on the sector
• Infosys, Mphasis, Tech Mahindra remain top Overweights
MORGAN STANLEY ON TECH : 06.01.2022
* Morgan Stanley on tech: Expect revenue growth to be strong & potentially surprise on the upside
* Expect Revenue Growth To Be Strong & Potentially Surprise On The Upside
* Margin Performance Turning Out To Be Slightly More Resilient Than Initial Expectations
* Prefer Large Caps Over Midcaps (Mphasis Top Pick In Midcaps)
CLSA ON IT : 04.01.2022
* Demand strength to continue; margins could surprise positively in 2022
* Forecast Indian IT services exports to report a 9.6% CAGR over FY22 24
* Believe cloud adoption for core infrastructure is now maturing
* Supply-side pressure should ease by mid-2022 & bring down fulfilment costs
* While valuations are optically rich, we expect them to remain elevated
* Estimate the top 5 it cos added 172,000 campus hires over Q3FY21 Q2FY22
* Expect top 5 it
GOLDMAN SACHS ON IT SERVICES : 17.12.2021
* Positive read-across from Accenture's Q1 earnings. GS says the IT major's results is a positive for Indian IT cos on demand & margin resilience fronts
• Positive Read-across From Accenture's Results
• Strong Upward Revision In Guidance With Solid Orderbook
* Co's Earnings A +ve Read-across For Indian IT Coverage From Both Demand, Margin Fronts
* Reiterate Buy On Infosys & TCS
MS ON IT SERVICES : 17.12.2021
* Accenture's earnings reinforce our view on growth momentum for Indian IT, MS says
* Accenture's Beat In Q1, Raise In Guidance & Demand Commentary Bode Well For Indian IT Cos
* Accenture's Earnings Reinforce Our View On Growth Momentum For Indian IT
* Given Large Valuation Discounts To Accenture, See Room For Indian IT Stocks To React Positively
CS ON IT SERVICES : 17.12.2021
* Very strong quarter by Accenture in Q1, Infosys, TCS & HCL Tech are our preferred picks in the India IT services space, CS says
* Very Strong Quarter By Accenture in Q1
* FY22 Revenue Guidance Revised Up To 19-22% Constant Currency YoY
* Management Sees Healthy Pipeline In Spite Of Record Bookings
* Management Believes This Is A Strong Multi year Cycle Of Strong Growth
Infosys, TCS & HCL Tech Are Our Preferred Picks In The India IT Services Space
MACQUARIE ON IT : 08.07.2021
* Infosys & L&T Infotech are Macquarie's top picks in the IT space
• Managed Services Had Strong 24% YoY Growth In Q2CY21
* ISG Raises Growth Outlook For Managed Services Deal Awards For CY21
* Growth Outlook For Managed Svcs Deal Awards Raised To 9% From 5%
* Expect Strong Demand Tailwinds For Aided By Cloud & Digital Transformation
* Top Picks Are Infosys & L&T Infotech
GOLDMAN SACHS ON TECHNOLOGY : 05.07.2021
* Strong digital demand while margins take a breather
• Buy Infosys, Mindtree
• Deal win announcements by Indian IT vendors during Q1FY22
• Demand and deal pipeline related commentary from company managements
MS ON TECHNOLOGY : 29.06.2021
* New tech cycle provides medium-term growth visibility but margin concerns & full valuations drive our in-line industry view, says Morgan Stanley
• New Tech Cycle Provides Medium-term Growth Visibility
• Margin Concerns & Full Valuations Drive Our In-line Industry View
• Overweight On TCS & Infosys Where Rev Surprises Could Offset Margin Misses
* Equal-weight On Tech Mahindra & HCL Tech On Lagging Growth
• Underweight On Wipro On Higher Execution Risks
CLSA ON IT : 09.06.2021
* Infosys, HCL (both BUY) and TCS (O-PF) are preferred stock picks
* Moderating expectations may guide stock moves
* Quarterly review of key demand indicators and stock movement
* Nifty IT Index's ranging price action suggests a neutral
* Nifty IT continues to hold above the rising 40-week moving
