IT Sector Q2 Results Preview - Recovery In Progress: HDFC Securities

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..HDFC Securities Institutional Equities.The IT sector growth is in the middle of its recovery, having bottomed out two quarters ago, and is expected to achieve a high single-digit over the next three quarters. Current stock prices reflect increased confidence in this trajectory. AI is proving to be a net positive for the sector, and with GCC growth differential peaking, concerns around terminal growth are easing, supporting sustained demand. Despite the absence of mega deals recently, some improvements in decision cycles and discretionary can support growth even as the fabric of cost optimisation remains. High-frequency indicators suggest a slight uptick in tech hiring and job postings in the U.S. Moreover, enterprise client revenue trends for CY25E look promising compared to CY24, particularly in verticals such as healthcare, manufacturing and Hi-Tech. Current estimates build in profit pool expansion of >35% from FY24-27E, similar to the growth seen between FY20-24. The base case of growth normalisation in H2 FY25E and subsequent recovery holds. However, the sharp valuation rerating limits the ‘near-term’ absolute upside. Among tier-1 IT stocks, we prefer TCS..Click on the attachment to read the full report:.IT Q2 Results Preview - Slightly Better With Green Shoots In Financial Services, Healthcare: ICICI Securities.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.

IT Sector Q2 Results Preview - Recovery In Progress: HDFC Securities

Despite the absence of mega deals recently, some improvements in decision cycles and discretionary can support growth even as the fabric of cost optimisation remains, says the brokerage.

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IT Sector Q2 Results Preview - Recovery In Progress: HDFC Securities

Despite the absence of mega deals recently, some improvements in decision cycles and discretionary can support growth even as the fabric of cost optimisation remains, says the brokerage.

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