Birlasoft’s share price has been going through a sell-off phase since the beginning of the new year 2022. In YTD time, this short stock of the IT company has fallen from its 52-week high. 585.85 per level to 308.25 each level, its new 52-week low on NSE. So, in the year 2022, this IT stock has fallen by about 48 per cent from its 52-week high, while in YTD time, it has dropped about 45 per cent. The stock has been hit hard in recent sessions following disappointing quarterly results from IT giants TCS and HCL Tech.
Birlasoft share price today The upside opened but profit-booking soon began and the stock hit a new 52-week low in Friday morning’s deals. 307.45 level, reached near the end of Thursday, down 3 percent 317.55 each level.
On why Birlasoft’s share price is falling ahead of Q1 results, Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “Following the disappointing Q1 results of TCS and HCL Tech, the market is facing demand pressure for smaller Indian IT companies. Including Birlasoft. The market is expecting weak quarterly results from Birlasoft with the expectation that there will be no major deals during the April to June 2022 quarter.”
Expecting the weakness in Birlasoft shares to continue, Anuj Gupta, Vice President – Research, IIFL Securities said, “Birlasoft shares are showing negative crossover on the chart pattern. It is in the range of 280 to 342 each level. Those having this stock in their portfolio are advised to maintain a strict stop loss on 280. New investors are advised to avoid any position till the declaration of Q1 results.”
The company is yet to announce its result announcement date, but its board of directors has set July 15 as a record date for dividend payments and buyback of shares. Hence, IT stock has hit a 52-week low today, trading as a dividend and buyback stock. However, the company’s next AGM is scheduled on August 3, 2022. Hence, some announcement regarding Birlasoft Q1 result date can be expected on or before this AGM.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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