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Stocks of information technology companies are seen up next week with investors preferring stocks of HCL Technologies Ltd to those of sector heavyweights Infosys and Tata Consultancy Services on attractive valuation. Investors will also eye Jul-Sep earnings of Azim Premji-promoted Wipro Ltd that will be announced on Tuesday. HCL Technologies remains a top-pick among the top three IT companies as there is still room for further upside in the stock. HCL Technologies reported a consolidated Jul-Sep net profit rise of 18.7% quarter-on-quarter to 14.16 bln rupees. The company posted net sales of 79.61 bln rupees, up 14% sequentially.
HCLT (HCL Technologies), by virtue of its strong execution capabilities, is reaping benefits of investments in platforms and automation, thus leading to improved profitability. Bengaluru-based Wipro is seen posting Jul-Sep net profit of 18.42 bln rupees, up 13% sequentially and net sales of 109.46 bln rupees, up 12% sequentially. In IT services, we expect 2.1% q-q USD revenue growth, along with EBIT (earnings before interest and tax) margin improvement of 80bps quarter on quarter. Overall, we expect 11.4% q-q growth in profit after tax," International brokerage Nomura Research said in a pre-earnings report.
(Wipro) Stock is trading attractive at 13.6x 2014-15 (Apr-Mar) earnings per share in an improving demand scenario. We believe company will reduce the revenue growth differential with peer group, resulting in lower price-to-earnings discount compared to TCS. Stocks of TCS and Infosys are seen rangebound in the next week.
Stocks of information technology companies are seen up next week with investors preferring stocks of HCL Technologies Ltd to those of sector heavyweights Infosys and Tata Consultancy Services on attractive valuation. Investors will also eye Jul-Sep earnings of Azim Premji-promoted Wipro Ltd that will be announced on Tuesday. HCL Technologies remains a top-pick among the top three IT companies as there is still room for further upside in the stock. HCL Technologies reported a consolidated Jul-Sep net profit rise of 18.7% quarter-on-quarter to 14.16 bln rupees. The company posted net sales of 79.61 bln rupees, up 14% sequentially.
HCLT (HCL Technologies), by virtue of its strong execution capabilities, is reaping benefits of investments in platforms and automation, thus leading to improved profitability. Bengaluru-based Wipro is seen posting Jul-Sep net profit of 18.42 bln rupees, up 13% sequentially and net sales of 109.46 bln rupees, up 12% sequentially. In IT services, we expect 2.1% q-q USD revenue growth, along with EBIT (earnings before interest and tax) margin improvement of 80bps quarter on quarter. Overall, we expect 11.4% q-q growth in profit after tax," International brokerage Nomura Research said in a pre-earnings report.
(Wipro) Stock is trading attractive at 13.6x 2014-15 (Apr-Mar) earnings per share in an improving demand scenario. We believe company will reduce the revenue growth differential with peer group, resulting in lower price-to-earnings discount compared to TCS. Stocks of TCS and Infosys are seen rangebound in the next week.
