INSUBCONTINENT EXCLUSIVE:
MUMBAI:A sharp fall in the value of the rupee may affect the Indian economy, but there have been significant EPS upgrades of IT stocks over
Solutions have risen 7-8 per cent during this period
in revenue growth rates for Indian IT companies not only because of a fall of the rupee but also due to better-than-expected numbers from
Midcap IT stocks such as NIIT Technologies, KPIT Technologies, Zensar Technology, LT Infotech and Mphasis have gained between 40 per cent
However, in at least a few cases, we believe the elevated valuations could be ignoring the business risks, and hence leave little scope for
cent from 6-8 per cent in Q1FY18, the highest in the last five years
Other than the rupee, factors such as good results by global IT majors and growth in BFSI sector indicate towards a substantial improvement
of global companies such as EPAM, Luxoft and now Accenture unequivocally indicate demand revival led by robust digital adoption and global
advised playing the sector recovery through companies such as Infosys, Tech Mahindra, HCL Technologies, NIIT Technologies and LT
Technologies Services where relative valuations are still inexpensive even though they may lack near-term triggers.
