After the announcement of Q4 results of HCL Technologies, Infosys, and Tata Consultancy Services (TCS), positional long-term investors are looking for bottom-fishing opportunities in these large-cap IT stocks since these stocks are available at much-discounted prices against other segment shares.
Infosys' share price today is around 27% below its 52-week high, whereas TCS share price is around 15% below its 52-week high. HCL Tech shares are around 10% below their 52-week high.
According to analysts and market experts, while HCL Tech, Infosys, and TCS' Q4 results missed street estimates, HCL Tech's results are comparatively much better than others.
On a year-to-date basis, Infosys shares have underperformed Nifty IT which has tanked 7%, while TCS and HCL Tech have outperformed. However, out of the three IT major stocks, only HCL Tech is in green so far in 2023.
“After two major misses in TCS and Infosys, the street was expecting another disappointment from HCL tech. The company however surprised on the positive side as the Q4 results came out in line with expectations. Overall, the result has not been a shocker like its leading IT peers and thus the street would appreciate it,” said Veer Trivedi, Research Analyst, at SAMCO Securities.
Analysts' calls remained mixed on TCS stock after Q4 results. While Kotak Securities has an 'Add' rating with a fair value of Rs 3,320, Choice Broking has a 'Neutral' rating with a target price of Rs 3,323. Nirmal Bang, however, has a sell call on the stock with a target price of Rs 2,638 per share.
While Reliance Securities has put a 'Sell' rating on Infosys stock with a target price of Rs 1,350, analysts at Philip Capital have assigned a 'Buy' tag to the IT giant stock with a target price of Rs 1,590 per share.
Several brokerages are bullish on HCL Tech stock. Emkay Global has a 'buy' rating on Infosys stock with a target price of Rs 1,150. Brokerage firms Kotak Securities and Sharekhan have assigned 'Add' and 'Buy' tags to the stock respectively.
"HCL Tech share price has immediate support placed at Rs 970, whereas strong support is placed around Rs 880 apiece levels. Bottom fishers are advised to buy HCL Tech shares around Rs 1,000 to Rs 1,020 zone and further accumulate if the stock comes around Rs 920 apiece levels," said Anuj Gupta, Vice President — Research at IIFL Securities.
According to Ravi Singhal, CEO at GCL Broking, one can buy Infosys shares as well. "One can buy Infosys shares around Rs 1,200, maintaining strict stop loss at Rs 1,100 apiece levels for long term target of Rs 1,860 in next two year time," Singhal said.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.