“We believe discretionary demand is unlikely to recover meaningfully in fiscal 2025 for India IT and, therefore, maintain our cautious stance,” said Abhishek Bhandari from Nomura. He ‘buy’ picks include Cognizant, Tech Mahindra, Coforge, Birlasoft, and eClerx, while having a ‘reduce’ rating on TCS, Wipro, LTIMindtree, L&T Technology Services, and Mphasis.
“Indian IT stocks have largely held firm despite a muted demand environment for the past several quarters. While stock prices of Accenture, EPAM, Globant, and Endava have gone up after the Accenture’s results, do note that multiples for such stocks de-rated considerably, unlike Indian IT,” said Kotak Institutional Equities.
