IT Services - Poised To Come Out Strongly From Macro Troubles: Nirmal Bang's Thematic View

Nirmal Bang Report

We are upgrading our stance on the Indian IT Services sector from ‘underweight’ to ‘overweight.’ We anticipate a robust double-digit EPS growth (17.5% compound annual growth rate) from FY24 to FY27E, driven by,

1. solid trailing twelve months deal wins of ~$100.7 billion as at Q1 FY25, up 16.6% YoY despite the downturn;

2. stabilised margins

3. sustained medium to long-term opportunities in Digital Transformation, especially in Cloud, cybersecurity and GenAI;

4. enhancing client’s operations across verticals; and

5. Potential positive consumer sentiment from expected Fed rate cuts and likely unlocking of client spending.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.