India IT Services - Beyond The Wild Swings Of Greed, Fear: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.July turned out to be an eventful month for IT services stocks. It all kicked off with a wave of optimism, fueled by a lack of negative news, which sparked a resurgent rally. However, that excitement was soon dampened by the global macro-economic uncertainty. As we assess the current landscape, it is essential to reflect on the transformations since Q4 FY24 and identify the ongoing challenges. Our exploration dives deep into these dynamics, shedding light on what has evolved and the obstacles that still lie ahead..Top picks: We prefer HCLTech and LTIMindtree among large-caps and Persistent Systems in the mid-cap space. HCLTech has managed seasonality well and is poised for a strong H2 FY25, with an achievable 2.5% growth target. Its free cash flow metrics have meaningfully improved and now match those of TCS and Infosys, justifying a premium valuation. LTIMindtree is well-positioned for growth in data engineering and ERP modernization, positioning it well to capture the pre-GenAI expenditures. We anticipate LTIMindtree to outperform its large-cap peers and expect low double-digit constant currency growth for FY26. Persistent Systems’ strong earnings growth and strategic shift to platform-based services for GenAI spending support a projected 17% USD revenue CAGR and ~25%+ EPS CAGR, justifying a premium valuation multiple..Click on the attachment to read the full report:.IT Services Check - No Immediate Signs Of Recovery, Uncertainty Reigns: Dolat Capital.DISCLAIMERThis 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.

India IT Services - Beyond The Wild Swings Of Greed, Fear: Motilal Oswal

The brokerage prefers HCLTech and LTIMindtree among large-caps and Persistent Systems in the mid-cap space.

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India IT Services - Beyond The Wild Swings Of Greed, Fear: Motilal Oswal

The brokerage prefers HCLTech and LTIMindtree among large-caps and Persistent Systems in the mid-cap space.

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