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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.
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