2 IT Stocks To Buy Post Quarterly Numbers As Recommended By Sharekhan

Broking firm Sharekhan has recommended buying the stocks of IT majors, Infosys and HCL Tech post their quarterly numbers.

Buy Infosys with a price target of Rs 1730

Sharekhan has a "buy" call on the stock of Infosys with a price target of Rs 1730 on the stock. "Given the looming global headwinds, the outlook for FY24E looks uncertain and with gradual recovery in the coming quarters. However, we believe the structural growth story for Indian IT sector remains intact. We maintain a Buy rating on Infosys with an unchanged price target of Rs. 1,730, given strong deal pipeline, its end-to-end capabilities and prowess in digital areas, analytics, automation and Cobalt Cloud. We advise investors to adopt a staggered approach to invest from a long-term perspective," the brokerage has said.

Infosys: Global headwinds loom

According to Sharekhan, given looming global headwinds, the outlook for FY24E looks uncertain and with gradual recovery in the coming quarters. "However, we believe the structural growth story for the Indian IT sector remains intact. We maintain a Buy rating on Infosys with an unchanged PT of Rs. 1,730 given strong deal pipeline, its end -to-end capabilities and prowess in digital areas, analytics, automation and Cobalt cloud. We advise investors to adopt a staggered approach to invest into the stock from long term perspective," the brokerage has said.

HCL Tech: Buy with a price target of Rs 1205

According to Sharekhan, owing to multiple global headwinds, outlook for FY24E looks uncertain, and recovery could be gradual in the coming quarters. "However, we believe the structural growth story for the Indian IT sector remains intact. We maintain Buy on HCL Tech with a revised price target of Rs. 1,205, given strong deal pipeline and tailwinds due cloud adoption and vendor consolidation. We advise investors to adopt a staggered approach to invest from a long-term perspective," the brokerage has said.

HCL Tech: Strong quarterly numbers

For Q3FY2023, HCL Tech reported strong performance across all metrics - revenue growth, margin expansion, booking growth, and people metrics. "Revenue in constant currency was up 5% q-o-q and 13.1% y-o-y, beating our estimates of CC growth of 3.6% q-o-q, led by the services business, which grew by 15.4% y-o-y in CC terms. EBIT margin improved by 165 bps to 19.6% in Q3FY23," the brokerage has said.

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