Produced by: Business Today Desk
Designed by: Manoj Kumar
TCS, Infosys, HCLTech and Wipro are major players in the Indian IT sector. But due to the macroeconomic headwinds and drop in tech demand, the IT sector has cut down its growth outlook for the upcoming quarters, and it is also evident on the decline in stock prices. Let us take an in-depth view at each company.
Although TCS missed street estimates, the company reported a 16.84% YoY rise in its consolidated net profit in Q1FY24. As per analysts at Motilal Oswal and Kotak Securities, TCS remains best positioned to benefit from long-term structural tailwinds in tech services and should see a relative pick-up in growth, aided by clients’ focus on cost optimisation.
TCS is trading at around Rs 3,616. The stock is up 18.92% year to date. The IT company’s PE ratio stands at 30.3, while the peer median is at 21.9. As per analysts, TCS has been performing far better than its peers in the current times.
Infosys reported a rise of 11% in net profit at Rs 5,945 crore YoY in June quarter. More importantly, the IT company sharply trimmed its FY24 revenue guidance to 1-3.5% from 4-7% amid an increasingly challenging demand environment.
IT giant Infosys' stock is trading at around Rs 1,486. The stock is up over 7.44% year to date. The company’s PE ratio stands at 24.94.
Wipro's Q1FY24 results revealed a decline in performance compared to the previous quarter. The company's consolidated net profit for Q1FY24 rose by 12 per cent YoY to Rs 2,870.1 crore. Sequentially, it was down 6.65%.
Wipro's stock is trading at around Rs 430. The stock is up 6.82% year to date. The IT company’s PE ratio stands at 19.43, far better than its peers, whose median PE ratio is at 21.9.
IT major HCLTech’s net profit in Q1 missed analysts' expectations, just like its peers. Net profit went up 7.65% YoY to Rs 3,534 crore. The company has also declared an interim dividend of Rs 10 per share.
HCLTech stock is trading at around Rs 1,293. Its PE ratio is at 23.46. The company’s stock is up over 40% year to date.