Coforge, Persistent, Tech Mahindra: Choice shares top IT picks; check targets
For Indian IT companies, Choice said the banking, financial services and insurance (BFSI) segment remains a relatively bright spot.
- Sep 10, 2026,
- Updated Sep 10, 2026 10:10 AM IST
Coforge Ltd, Persistent Systems Ltd and Tech Mahindra Ltd have emerged as the top investment picks among Indian IT companies, according to Choice Institutional Equities, which cited rising technology spending by major banks and increasing focus on artificial intelligence (AI), cybersecurity, cloud, data and modernisation.
Choice said banks' technology spending is entering a structural reinvestment cycle, with technology budgets at major banks rising around 16 per cent since June 2024 and 7.8 per cent year-on-year (YoY) in June 2026, despite macroeconomic uncertainty.
"Spending is increasingly skewed towards AI, cybersecurity, cloud, data and modernisation, with AI accelerating the broader technology transformation cycle," the domestic brokerage said.
For Indian IT companies, Choice said the banking, financial services and insurance (BFSI) segment remains a relatively bright spot. However, it noted that vendor consolidation and gains in wallet share could be more important for IT companies than overall growth in technology spending.
The brokerage said it prefers vendors that combine scale, BFSI domain expertise, modernisation capabilities and differentiated AI offerings. At the same time, it noted that AI-led productivity gains and outcome-based pricing could limit revenue conversion.
"Against this backdrop, we see Coforge, Persistent and Tech Mahindra as the best-positioned beneficiaries and our top investment ideas," Choice Institutional Equities said.
Among its top picks, Choice has a 'BUY' rating on Coforge with a target price of Rs 2,050. Persistent Systems also carries a 'BUY' rating, with a target of Rs 6,350, while Tech Mahindra has an 'ADD' rating with a target price of Rs 1,775.
The brokerage has a 'REDUCE' rating on Tata Consultancy Services Ltd (TCS) with a target of Rs 2,320, Infosys Ltd at Rs 1,140, Wipro Ltd at Rs 170 and HCLTechnologies Ltd at Rs 1,330.
LTM (formerly known as LTIMindtree) has a 'SELL' rating with a target price of Rs 4,350, while Mphasis has a 'REDUCE' rating with a target of Rs 2,520.
Choice has an 'ADD' rating on Zensar Technologies Ltd with a target of Rs 550 and on Happiest Minds Ltd with a target of Rs 440.
Coforge Ltd, Persistent Systems Ltd and Tech Mahindra Ltd have emerged as the top investment picks among Indian IT companies, according to Choice Institutional Equities, which cited rising technology spending by major banks and increasing focus on artificial intelligence (AI), cybersecurity, cloud, data and modernisation.
Choice said banks' technology spending is entering a structural reinvestment cycle, with technology budgets at major banks rising around 16 per cent since June 2024 and 7.8 per cent year-on-year (YoY) in June 2026, despite macroeconomic uncertainty.
"Spending is increasingly skewed towards AI, cybersecurity, cloud, data and modernisation, with AI accelerating the broader technology transformation cycle," the domestic brokerage said.
For Indian IT companies, Choice said the banking, financial services and insurance (BFSI) segment remains a relatively bright spot. However, it noted that vendor consolidation and gains in wallet share could be more important for IT companies than overall growth in technology spending.
The brokerage said it prefers vendors that combine scale, BFSI domain expertise, modernisation capabilities and differentiated AI offerings. At the same time, it noted that AI-led productivity gains and outcome-based pricing could limit revenue conversion.
"Against this backdrop, we see Coforge, Persistent and Tech Mahindra as the best-positioned beneficiaries and our top investment ideas," Choice Institutional Equities said.
Among its top picks, Choice has a 'BUY' rating on Coforge with a target price of Rs 2,050. Persistent Systems also carries a 'BUY' rating, with a target of Rs 6,350, while Tech Mahindra has an 'ADD' rating with a target price of Rs 1,775.
The brokerage has a 'REDUCE' rating on Tata Consultancy Services Ltd (TCS) with a target of Rs 2,320, Infosys Ltd at Rs 1,140, Wipro Ltd at Rs 170 and HCLTechnologies Ltd at Rs 1,330.
LTM (formerly known as LTIMindtree) has a 'SELL' rating with a target price of Rs 4,350, while Mphasis has a 'REDUCE' rating with a target of Rs 2,520.
Choice has an 'ADD' rating on Zensar Technologies Ltd with a target of Rs 550 and on Happiest Minds Ltd with a target of Rs 440.