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Wipro, HCL Tech, TechM, Infosys and TCS: IT stocks that analysts picked ahead of Q3 results

Wipro, HCL Tech, TechM, Infosys and TCS: IT stocks that analysts picked ahead of Q3 results

TCS, Infosys, HCL Technologies, Tech Mahindra and TCS may register dollar growth of 0.7-2.8 per cent QoQ in constant currency (CC) terms, said IDBI Capital

TCS and HCL Tech should report relatively better quarter, while Tech Mahindra should lag, said Kotak Institutional Equities TCS and HCL Tech should report relatively better quarter, while Tech Mahindra should lag, said Kotak Institutional Equities

December is historically a weak quarter for IT firms, thanks to higher furloughs. But this time around, macro challenges could also hit demand in many verticals. Analysts largely expect the quarter to be subdued for IT biggies in revenue terms. They see Infosys as their best pick in the IT pack, for now.

In revenue terms, HCL is seen registering 2.8 per cent QoQ revenue growth in CC terms, led by product revenues. Wipro is expected to report 1.2 per cent QoQ revenue growth in CC terms.  IDBI Capital sees Infosys logging a 1 per cent  QoQ revenue growth, 0.7 per cent CC growth for TCS and nil sequential CC growth for TechM.

The outperformance of Nifty IT was due to developed market macros holding up better than expected on higher consumption spending, indications of no material deterioration in demand pipeline with US market continuing to be relatively strong and correction of valuation from October 2021 levels.

Published on: Jan 02, 2023, 11:24 AM IST
Posted by: Priya Raghuvanshi, Jan 02, 2023, 11:19 AM IST