 "9 IT stocks including KPIT Tech, Mphasis rally over 100% in one year")
KPIT Technology, Mphasis and Larsen & Toubro (L&T) Infotech were among nine information technology (IT) companies that rallied more than 100% in past one year, hitting fresh record highs on the BSE on Friday on expectation of healthy earning in April-June quarter (Q1FY19).
Sonata Software, Hexaware Technologies, Firstsource Solutions, Mindtree, Infinite Computer Solutions (India) and NIIT Technologies, too, doubled their market price in one year.
The S&P BSE IT index, which hit a record high of 14,525 on Wednesday, has rallied 42% as compared to 14% rise in the S&P BSE Sensex. Nifty IT index touched a new high of 14,655 today, surged 40% against 11.5% gain in the Nifty 50 index.
Tata Consultancy Services (TCS) hit a new high of Rs 1,998 today, gaining 6% in past three trading sessions after the country’s biggest software services exporter posted a better-than-expected rise of about 23.5% year on year (YoY) and 6.3% quarter on quarter (QoQ) in first-quarter (Q1) net profit, helped by strong growth in its banking, financial services and insurance division (BFSI).
“TCS reported an above-expected operating performance in Q1FY19 driven by a beat on both revenue and margins. With a growth recovery in BFSI services in North America, management is confident of sustaining growth momentum in the medium term,” analysts at BOB Capital Markets said in result review.
“Technology is expected to report its first-double digit profit after tax (PAT) growth (13.8%) after eight quarters, with Wipro (-1.7%) being the only IT company expected to report PAT de-growth. The trend of revenue growth acceleration of the past two quarters on a YoY constant currency basis should continue into 1QFY19 as well, with Tier II IT universe outperforming once again”, Motilal Oswal Securities said in result review.
“Taking cues from IT companies’ Q4FY18 commentary, FY19E may be better compared to FY18 in terms of demand trends, revenue growth. However, what needs to be kept in sight is improvement in client spending in most company’s major vertical, BFSI,” according to ICICI Securities.
Across midcap coverage, MindTree and NIIT Tech are expected to continue its growth momentum on the back of healthy deal pipeline, persistent is expected to recover after a weak Q4FY18, the brokerage firm said in result preview.
Sonata Software, Hexaware Technologies, Firstsource Solutions, Mindtree, Infinite Computer Solutions (India) and NIIT Technologies, too, doubled their market price in one year.
The S&P BSE IT index, which hit a record high of 14,525 on Wednesday, has rallied 42% as compared to 14% rise in the S&P BSE Sensex. Nifty IT index touched a new high of 14,655 today, surged 40% against 11.5% gain in the Nifty 50 index.
Tata Consultancy Services (TCS) hit a new high of Rs 1,998 today, gaining 6% in past three trading sessions after the country’s biggest software services exporter posted a better-than-expected rise of about 23.5% year on year (YoY) and 6.3% quarter on quarter (QoQ) in first-quarter (Q1) net profit, helped by strong growth in its banking, financial services and insurance division (BFSI).
“TCS reported an above-expected operating performance in Q1FY19 driven by a beat on both revenue and margins. With a growth recovery in BFSI services in North America, management is confident of sustaining growth momentum in the medium term,” analysts at BOB Capital Markets said in result review.
“Technology is expected to report its first-double digit profit after tax (PAT) growth (13.8%) after eight quarters, with Wipro (-1.7%) being the only IT company expected to report PAT de-growth. The trend of revenue growth acceleration of the past two quarters on a YoY constant currency basis should continue into 1QFY19 as well, with Tier II IT universe outperforming once again”, Motilal Oswal Securities said in result review.
“Taking cues from IT companies’ Q4FY18 commentary, FY19E may be better compared to FY18 in terms of demand trends, revenue growth. However, what needs to be kept in sight is improvement in client spending in most company’s major vertical, BFSI,” according to ICICI Securities.
Across midcap coverage, MindTree and NIIT Tech are expected to continue its growth momentum on the back of healthy deal pipeline, persistent is expected to recover after a weak Q4FY18, the brokerage firm said in result preview.
| COMPANY | LATEST | ONE-YEAR BEFORE | GAIN(%) |
| L & T INFOTECH | 1,841.90 | 786.05 | 134.32 |
| KPIT TECH. | 301.55 | 134.95 | 123.45 |
| INFINITE COMP | 455.50 | 206.81 | 120.25 |
| FIRSTSOUR.SOLU. | 72.95 | 34.85 | 109.33 |
| MINDTREE | 1065.80 | 514.00 | 107.35 |
| MPHASIS | 1211.00 | 585.20 | 106.94 |
| SONATA SOFTWARE | 329.40 | 163.60 | 101.34 |
| HEXAWARE TECH. | 493.70 | 246.20 | 100.53 |
| NIIT TECH. | 1142.75 | 570.10 | 100.45 |
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