Get App
Download App Scanner
Scan to Download
Advertisement
This Article is From May 11, 2023

IT Services Stocks - Attractive Payout Yield To Buffer Near-Term Macro Pain: Motilal Oswal

IT Services Stocks - Attractive Payout Yield To Buffer Near-Term Macro Pain: Motilal Oswal
Close view of typing on laptop keyboard. (Source: pexels)
STOCKS IN THIS STORY
Larsen & Toubro Ltd.
--
LTIMindtree Ltd.
--
HCL Technologies Ltd.
--
Wipro Ltd.
--
Tech Mahindra Ltd.
--
Shyama Infosys Ltd.
--
Tata Consultancy Services Ltd.
--

BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

IT services stocks have significantly de-rated over the last one year, owing to growth moderation due to a weak macro environment and historically high base valuations.

While FY24 industry growth is expected to remain muted due to pressure in key client industries, we are positive on the sector due to-

  1. good long-term demand outlook, and

  2. tier-1 median price/earning at 17 times (one year forward) factoring in the near-term weakness.

Moreover, we see support for share prices of our tier-I coverage from historically high payout yields (FY24/FY25 median yield at 4.2%/4.9%), having crossed the 4% mark in FY23 for the first time since FY18.

Click on the attachment to read the full report:

Motilal Oswal IT Sector Update.pdf
VIEW DOCUMENT

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.

To continue reading this story
You must be an existing Premium User

Newsletters

Update Email
to get newsletters straight to your inbox
⚠️ Add your Email ID to receive Newsletters
Note: You will be signed up automatically after adding email

News for You

Set as Trusted Source
on Google Search