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Anand Rathi Report
From the previous quarter, no growth acceleration or deceleration seen in S&P 500 sectoral components. So, trading multiples for Indian IT are likely to hold at current levels.
Budgets are likely to be flattish but FY25 is starting on a better note from a growth standpoint: larger order backlog, steady (to potentially declining) interest-rate environment, and expectations of fewer deal cancellations ahead.
Despite these, delayed recovery expectations are leading to a ~2% estimate cut.
The median IT sector FY26e price-to-earning is now 24 times (unchanged from Q3), with FY25e PE at 28 times (unchanged).
In comparison, the Nifty-50 is trading at 18 times FY26e PE.
Top picks: Persistent Systems Ltd., Cyient Ltd., Mastek Ltd.
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