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TCS, Infosys Among Six IT Stocks Rated 'Sell'; KPIT Tech the Sole 'Buy' Ahead Of Q1 Results— Full List Inside

India's IT sector is likely to report a subdued start to FY27, with Nirmal Bang expecting revenue growth pressure across most large-cap technology companies even as deal activity remains healthy.

TCS, Infosys Among Six IT Stocks Rated 'Sell'; KPIT Tech the Sole 'Buy' Ahead Of Q1 Results— Full List Inside
Ahead of the June-quarter earnings season, the brokerage has maintained a cautious stance on the sector, assigning Sell' ratings to six stocks while retaining a lone Buy' recommendation on KPIT Technologies.
(Photo: NDTV Profit/ AI generated image)
STOCKS IN THIS STORY
Infosys Ltd.
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Tech Mahindra Ltd.
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Tata Consultancy Services Ltd.
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LTIMindtree Ltd.
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HCL Technologies Ltd.
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Wipro Ltd.
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Persistent Systems Ltd.
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Coforge Ltd.
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Mphasis Ltd.
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Birlasoft Ltd.
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Zensar Technologies Ltd.
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Tata Elxsi Ltd.
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Tata Technologies Ltd
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

India's IT sector is likely to report a subdued start to FY27, with Nirmal Bang expecting revenue growth pressure across most large-cap technology companies even as deal activity remains healthy.

Ahead of the June-quarter earnings season, the brokerage has maintained a cautious stance on the sector, assigning ‘Sell' ratings to six stocks while retaining a lone ‘Buy' recommendation on KPIT Technologies.

According to the brokerage, Tier-I IT companies are expected to report constant-currency revenue growth in the range of-1.2% to 1.8% QoQ, while Tier-II firms could deliver relatively stronger growth driven by robust deal wins and conversion of large contracts into revenue.

Growth continues to be supported by cloud migration, AI-related engagements and digital transformation projects, although demand remains weak in select verticals such as telecom, hi-tech, travel and hospitality.

Among the stocks under its coverage, Nirmal Bang has retained 'Sell' ratings on TCS, Infosys, HCLTech, Wipro, LTIMindtree and Tech Mahindra. It has assigned 'Hold' ratings to Persistent Systems, Coforge, Mphasis, Birlasoft, Zensar Technologies, Tata Elxsi and Tata Technologies, while KPIT Technologies remains the only stock with a 'Buy' recommendation.
 

Click on the attachment to read the full report:

Nirmal Bang Q1 It Preview.pdf
VIEW DOCUMENT

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