HCL Tech Vs Infosys Vs TCS: After Indian IT companies HCL Technologies, Infosys and Tata Consultancy Services (TCS) announced their quarterly results, positional long-term investors are looking for fishing opportunities in these large-cap IT stocks as these stocks are trading at a substantial discount to other stocks. Available at cost. Block share. Infosys share price is down almost 27 per cent from its 52-week high today, while TCS share is down almost 15 per cent from its 52-week high today. Similarly, HCL Tech’s stock is about 10 per cent away from its 52-week high. However, if we compare the current market price of these IT stocks with the pre-Ukraine crisis price, these large-cap Indian IT stocks are available at a much lower valuation.
According to stock market experts, the results of HCL Tech, Infosys and TCS are less than the market estimates, but comparatively, the results of HCL Tech are much better than others. However, good results do not mean good financial condition. The Nasdaq has seen a big rally recently after strong results were announced by major US tech companies, but it has been marred by layoffs and other austerity measures. Besides, the outlook for the next one to two quarters for Indian IT companies looks challenging due to the hike in interest rates by the US Fed officials and the economic slowdown due to the bank crisis in the US. This is going to impact the Indian IT company’s business in the BFSI segment, which accounts for at least 30 per cent of its US business revenue.
Speaking on the outlook for Indian IT companies, Saurabh Jain, Vice President – Research at SMC Global Securities Said, “Due to economic slowdown due to interest rate hike by US Fed and bank crisis in US, Indian IT companies are facing challenges on their BFSI business segment which accounts for 30 per cent of their total business in US Hence, Indian IT companies are facing a huge challenge to survive and maintain their financial health even at the current levels. TCS And Infosys has been disappointing, one should not jump to the conclusion that HCL Tech has posted better quarterly numbers and hence it is a stock we can consider for bottom fishing.”
Saurabh Jain of SMC global securities Investors are advised to wait for HCL Tech guidance and take a call as future PEs will be available to them to make a fair comparison among Indian IT stocks.
HCL Tech Vs Infosys Vs TCS Share
At which IT stocks can be bought todaySandeep Pandey, director, Basav Capital, said, “Growth in Nasdaq doesn’t mean growth smelly IT Index. In the current scenario, IT stocks which have fallen lower in the recent sell-off are expected to rally strongly if the trend reverses. As TCS guidance failed to inject enthusiasm in the markets, Infosys was also not able to boost the morale of Dalal Street bulls. But, the results of HCL Tech have led to a rally in the Nifty IT index and increased interest in other IT stocks as well. So, in comparison to HCL Tech, Infosys and TCS, I would prefer HCL Tech as it has given comparatively better results and HCL Tech share price has declined as compared to Infosys and TCS shares.”
However, director of Basav Capital advised positional investors to take positions in HCL Tech shares in a calibrated manner and suggested investors to invest in three to four phases as the next one to two quarters are expected to be sluggish for Indian IT companies. hopefully. However, he also added that one cannot time the market and hence, start accumulating stocks at current levels.
Anuj Gupta, Vice President – Research at key levels regarding HCL Tech shares IIFL Securities Said, “HCL Tech share price has been given immediate support 970 while strong support for the IT major is around 880 each level. Bottom fishers are advised to buy HCL Tech shares from 1000 More accumulation as the stock moves around the 1020 zone 920 each level.”
Anuj Gupta of IIFL Securities said that Short Term, Medium Term and Long Term HCL Tech share price targets will be 1220, 1350 and 1500 per share level.
GCL Broking CEO Ravi Singhal said that can buy Infosys shares Too. Infosys shares can be bought 1200 maintains strict stop loss 1100 each level for a long term target of 1860 in the next two years time.
HCL Tech’s Q4 earnings were broadly in line with market estimates. The IT giant saw double-digit growth in YoY terms, however, the performance was weak sequentially. In addition, the IT major posted a one-point decline in New Deal wins. However, this FY24 guidance looks encouraging. Overall, HCL Tech’s Q4 results are not surprising and hence the market is expecting share price appreciation.
Infosys reported weak Q4FY23 numbers sequentially as IT giant’s Q4 PAT came in 6,128 crore, down about 16% QoQ. While revenue also fell by 2.2% QoQ 37,441 crores. In constant currency, the company’s revenue growth came in at 3.2% QoQ and 8.8% YoY. Operating margin was 21% in Q4.
TCS reports net income, blames bank crisis in US for weak Q4 numbers 113.9 billion ($1.4 billion) for the fourth quarter ending March, up 15% over the previous year. However, it came in lower than analysts’ estimates. 115.3 billion on average. Despite this, TCS’s sales grew by 17 per cent to Rs 591.6 billion.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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