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Time to relook at how we look at them: 6 IT stocks operating in niche areas with upside potential of up to 39 %
Over the years, perceptions of IT stocks have evolved, yet there remains a notion that large-cap companies like TCS, Infosys, and Wipro are the primary indicators of trends in the IT sector. However, this view is outdated. In the past five years, the emergence of machine learning, cloud computing, and other specialized segments has shifted the landscape. Smaller companies operating in these niche areas have demonstrated significantly stronger growth, even as industry giants like Infosys and Wipro face growth pressures. Today, Probably, investing in the not so well talked about IT stocks is like contrarian investing, which pays in the long term though in the short term one might feel that one is not doing the best thing.
Ecommerce sellers count on cash-flow gains from GST cut
Recommendations by the GST council aim to benefit suppliers on online platforms and real money gaming firms through tax changes, including a reduction in tax collected at source for electronic commerce operators.
Q4 results: Stable costs boost India Inc. profits
Steady costs and firm domestic demand supported corporate performance in the March quarter.
IT industry's competitive intensity to be at highest levels in FY25: HCLTech CEO C Vijayakumar
Despite a challenging economic environment, HCLTech has achieved remarkable annual growth and outpaced larger competitors. The third-largest software services firm, with annual revenues of $13.27 billion, reported growth that outpaced Tata Consultancy Services 4.1% and Infosys 1.4%. Smaller players such as Wipro and Tech Mahindra faced significant struggles.
Ample growth opportunities for all IT services companies from a longer-term perspective: Sumit Pokharna
What we have scanned and found out is that they expect the demand to improve in calendar year 2024 but definitely it will be below normalised level. Secondly, their priority is to upgrade the tech stack.
Unpacking K Krithivasan's first year as TCS CEO
TCS CEO K Krithivasan completed a year in office this month. His term was marked by an unprecedented slowdown in tech demand. The veteran, however, has brought growth and stability for the bellwether. Under his leadership, TCS reached $29.1 billion in annual revenues in the year ending this March, growing at 4.1%.
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Sandip Agarwal's 4 top bets from IT sector for near term
I think now the attrition rates are under control. Margin should expand because margin is a direct factor of where your attrition is, utilisation is. So, I think the revenue growth I do not see will pick up very substantially immediately, because if at all the ECB rate cut has happened, now in US also we are expecting some cool off to happen on the rate front.
IT’s bench strength halves as slump-hit companies eye efficiencies
The bench strength at top Indian outsourcers has nearly halved of late, with higher utilisation and generative artificial intelligence (GenAI) driving efficiency in the $254-billion IT industry. Bench strength in the IT industry means full-time employees who are not assigned any active project.
Slowdown hits Indian IT companies’ campus recruitments
The IT service business model, which relies on pyramid structure with its base constituting young and less expensive employees, has been shrinking. In FY24, both TCS and Infosys saw the share of young employees in their total headcount plunge to a five-year low and a decadal low, respectively.
Amazon India gets funds; IT margins hit
Amazon has ploughed fresh funds in its Indian marketplace entity. This and more in today’s ETtech Top 5.
IT sweats to eke out margins on pricing squeeze, staff costs
Indian outsourcing companies face a margin squeeze in FY24 due to a triple threat: aggressive deal pricing, rising employee costs, and the pressure to boost revenue despite tight global budgets. Notably, Tata Consultancy Services (TCS), the industry leader, seems to be the only exception.
Higher ability to withstand sudden headwinds: 5 largecap stocks with right mix of RoE & RoCE
There are two kinds of risk in equity markets, first the overall market or asset class risk. Second is individual risk. First risk is not under control of anyone, because it can hit the market due to any reason, right from any geopolitical uncertainty to any monetary event in any part of the world. Probably the first kind of risk got played recently with the flip flop of the US and development in the middle east. The second risk which is individual risk is about the choice of the stock which one buys. In equities after a point of time it is more important to manage individual risk than to take risk. In equities the risk is more in the short term, over longer term, it is not very high. One way to manage risk is that when valuations are high, move to companies which have strong and large balance sheets and have seen many economic cycles and have survived the slowdowns in the past.
TCS CEO K Krithivasan’s remuneration at Rs 25 crore in FY24
K Krithivasan Earnings FY 24: In FY24, Tata Consultancy Services (TCS) CEO and MD K Krithivasan's total remuneration was Rs 25.2 crore, a decrease from former CEO Rajesh Gopinathan's Rs 29.16 crore in FY23. N G Subramaniam, the COO and ED at TCS, who is retiring this month, drew a total compensation of Rs 26.1 crore in FY24.
Time to unlink size and agility: 6 not-so-large IT stocks operating in niche areas with upside potential of up to 53%
Over the years, there has been some change in how the street looks at IT stocks, but somehow, still there is a perception that large cap companies like TCS, Infy and Wipro, are the ones which give all the indication of what is happening in the IT space. But the reality has been very different. Especially in the last five years, since the time ML and cloud and other speciality segments have come in the software segment. There have been smaller companies which operate in specialized areas who have been able to show much stronger growth at a time when Infy and Wipro’s of the world are under pressure in terms of growth.
Why hasn’t Infosys upgraded margin guidance if TCVs are at record high? Sandip Agarwal asks
Sandip Agarwal asks: "Despite a strong TCV, why is the growth guidance so low? We are not able to connect the dots of what is pulling down growth so much and why they are projecting this kind of growth. In my view, this guidance and these numbers are on the lower side of what anyone would have been anticipating."
Look at them with a different lens? 6 IT stocks operating in niche areas with upside potential of up to 34%
Over the years, there has been some change in how the street looks at IT stocks, but somehow, still there is a perception that large cap companies like TCS, Infy and Wipro, are the ones which give all the indication of what is happening in the IT space. The fact is that over the last decade so many segments and sub segments have emerged and along with the numbers of mid and small size companies have emerged in the IT space that deciding on IT space based on what is happening with TCS and infosys or wipro or any mega cap companies would be an incorrect thing to do. The fact is that while the name of the Indian IT sector can be divided into different segments, each of them has not become an industry itself. Infact if one looks at the stock performance, the street is gradually making a difference as the divergence in return is visible. Will this trend continue and these stocks chart their own course independent of what TCS and Infy are doing?
TCS shares defy market sell-off as target prices rise after Q4 beat. Should you buy?
TCS shares rose up to 1% to the day's high at Rs 4,063 on BSE even as Sensex and Nifty fell around 1%. During the March quarter, TCS reported a 2.2% YoY increase in its revenue at Rs 61,237 crore in constant currency terms, despite ongoing demand weakness
TCS raises recovery hopes driven by strong deal momentum
Buoyed by a mega 15-year deal with the UK-based insurer Aviva, which is pegged at around $ 2.5 billion according to media reports, the country’s largest software exporter reported a total contract value (TCV) of $13.2 billion for new deals, the largest in a single quarter.
TCS Q4 show trumps D-Street expectations: 5 takeaways from the earnings
TCS Q4 Results: The company's order book for FY24 was at an all-time high of $42.7 billion and record $13.2 billion in the March quarter, led by the mega deal with Aviva and others in the emerging markets vertical.
TCS Q4 Results: Profit rises 9% YoY to Rs 12,434 crore, beats estimates
TCS Q4 Results: Revenue from operations increased by a marginal 3.5% year-on-year (YoY) to Rs 61,237 crore. On a sequential basis, profit after tax jumped 12%, compared with Rs 11,058 crore clocked in the preceding December quarter. Revenues were up 1% quarter-on-quarter (QoQ).
TCS announces final dividend of Rs 28 per share
This will be paid on the fourth day from the conclusion of the 29th Annual General Meeting. TCS' revenue for the January-March quarter stood at Rs 61,237 crore, up 3.5% on a year-on-year basis and 2.2% YoY in constant currency terms. Full-year revenue was reported at Rs 240,893 crore, up 6.8% YoY and over 3.4% in the CC terms while the net income stood at Rs 46,585 crore jumping by 10.5% YoY.
TCS Q4 results on Friday: Recap of how IT bellwether fared in FY24; key things D-Street needs to watch out for
TCS Q4 Results Preview: TCS to release earnings for March with slight improvement expected. Analysts monitor core earnings, profitability, deal wins, and management outlook for FY25 closely after challenging quarters.
TCS likely to outdo peers with ramp-up in big deals
Its operating margin is also likely to expand in the absence of any major wage increases and higher internal efficiency. The country’s largest software exporter is slated to declare the fourth quarter numbers on Friday.
As Wipro gets a new CEO, a look at its woes in four data charts
The change of guard at Wipro is coming at a time when the IT major's operating margins are the lowest among its peers. And the change comes at a time when clients are in no mood to ramp up big budget transformation deals.
How much positivity in IT stocks is already priced in? Apurva Prasad answers
Apurva Prasad says s that the IT pack has experienced a positive movement in the last two months. However, he believes that a significant portion of the improved outlook is already priced into the market, with PE multiples increasing by 20-25%. Prasad emphasizes the importance of operational performance and highlights that many companies, including larger ones, have the potential for margin improvement.
Wipro Q3 Results: Operating margin beat, deal wins among 5 key takeaways from earnings card
The IT major has guided for -1.5% to 1% sequential growth in its IT services business revenue. This translates to a revenue of $2.62-$2.67 billion in the March quarter in constant currency terms. Most analysts had expected Wipro to give -1% to +1% growth in constant currency revenue.
Sensex ekes out marginal gains ahead of TCS, Infosys results; US inflation data
The BSE benchmark Sensex rose 63 points or 0.09% to settle at 71,721. The NSE Nifty gained 28 points or 0.13% to end at 21,647. From the Sensex stocks, index heavyweight Reliance Industries surged 2.5%. UltraTech Cement, Axis Bank, IndusInd Bank and Power Grid also closed higher, while Infosys, HUL, Wipro, and L&T settled with cuts.
Top IT companies boost margins amidst market struggles
To be sure, Infosys, HCLTech and Wipro have slashed their revenue guidance for the upcoming quarter and full fiscal amid a freeze on tech spends and delay in decision making.
TCS rolls out salary hikes, takes 200-bps impact on operating margin
"We have gone ahead and rolled out our annual salary increase with effect from April 1st. Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies," TCS CFO Samir Seksaria said.
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