From mint · Vaamanaa Sethi · · 1m 30s
IT Stocks to Add Before Q2 Results
HDFC Securities targets 20-34% upside for TCS, HCL Tech, and Mphasis ahead of Q2 earnings.
In brief
HDFC Securities targets 20-34% upside for TCS, HCL Tech, and Mphasis ahead of Q2 earnings. HDFC Securities recommends TCS, HCL Tech, and Mphasis with 20-34% potential upside ahead of Q2 results FY27. Originally reported by mint.
HDFC Securities Recommends IT Stocks
HDFC Securities has recommended IT stocks with 'buy' ratings and up to 34% upside ahead of Q2 earnings season FY27.
“AI Quick Read IT stocks to buy : Brokerage firm HDFC Securities has recommended IT stocks by assigning ‘buy’ rating with up to 34% upside ahead of the beginning of second quarter earnings season (Q2 results FY27)”
TCS and HCL Tech Target Prices
TCS has a target price of ₹ 2,470 implying 20% upside, while HCL Technologies has a target of ₹ 1,370 indicating 11% upside.
“Tata Consultancy Services (TCS) 2,470 20% HCL Technologies 1,370 11%”
Wipro and Tech Mahindra Targets
Wipro could rise 17% to ₹ 185, while Tech Mahindra has a target of ₹ 1,660 suggesting 9% upside.
“Wipro 185 17% Tech Mahindra 1,660 9%”
Mid-Cap IT Stocks with Upside
Persistent Systems has a target of ₹ 6,070 implying 15% upside, while Mphasis stands out with a target of ₹ 2,840 offering 32% potential upside.
“Persistent Systems 6,070 15% Mphasis 2,840 32%”
Engineering and Smaller IT Companies
L&T Technology Services has a target of ₹ 3,570 implying 11% upside, while Tata Elxsi has a target of ₹ 3,900 offering 26% potential upside.
“L&T Technology Services 3,570 11% Tata Elxsi 3,900 26%”
Q2 Results FY27 Preview
HDFC Securities expects currency movements to impact IT stocks by 10-20 basis points, with dollar revenue growth ranging from 0.5% decline to 1.8% rise QoQ.
“HDFC Securities, in its report, said that the impact of currency movements is expected to be relatively small this quarter, at around 10, 20 basis points (bps) on average”
Q2 Results FY27 Performance
HCLTech and Tech Mahindra are expected to perform best with 2% QoQ growth in constant currency and improved operating margins.
“HCLTech is estimated to report around 2% QoQ growth in constant currency (CC), along with an improvement of about 50 bps in operating margins”
The headline
HDFC Securities recommends TCS, HCL Tech, and Mphasis with 20-34% potential upside ahead of Q2 results FY27.
