This article is more than 1 month old.

IT sector outlook: Positive on Mphasis & Wipro, says HDFC Securities

Mini

Apurva Prasad of HDFC Securities spoke to CNBC-TV18 to discuss earnings from the IT space.

Apurva Prasad of HDFC Securities spoke to CNBC-TV18 to discuss earnings from the IT space.
Prasad said, “There were some pockets of misses but I would broadly characterise results to be fairly strong especially in context of the guidance that the companies have given. There is much higher visibility especially the near-term visibility based on the strong sign-ins as well as strong hiring trends.”
He added, “In terms of which companies posted numbers slightly better than expectation on most parameters I would say Wipro can be characterised within that.”
On Wipro he said, “We have an add rating on Wipro, we don’t think that the upside potential is significant, there has been a fair amount of re-rating that has happened and the discount to valuations to larger peers is a lot lower so to that extent I would say lot of positives are getting factored into this.”
He added, “From an earnings growth potential candidates like Infosys and Tata Consultancy Services have probably stronger earnings growth trajectory.”
On Mphasis Prasad said, “We are positive on Mphasis, I believe that if the transaction is done it removes the promoter’s sale over hang, it ensures business continuity and it does translate into opportunities within the portfolio which is growing significantly ahead of company average so with that in context and the overall acceleration in total contract value (TCV) wins by Mphasis we do expect about 14-15 percent earnings compound annual growth rate (CAGR) for the next two years for Mphasis. We do have a positive view.”
Watch accompanying video for more.
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Market Movers

CompanyPriceChange%Loss
Adani Ports730.10 -31.75
Hindalco380.25 -10.60
Tata Steel1,142.15 -32.15
Power Grid Corp241.55 -6.05
JSW Steel710.40 -14.70
CompanyPriceChange%Loss
Power Grid Corp241.50 -6.00
Reliance2,216.75 -32.95
Bajaj Finance6,097.25 -63.45
HDFC2,519.00 -25.40
Bharti Airtel537.75 -4.85
CompanyPriceChange%Gain
Nestle18,006.10 321.30
TATA Cons. Prod729.40 9.90
ONGC126.80 1.45
M&M817.50 8.90
Bajaj Finserv11,900.00 101.30
CompanyPriceChange%Gain
Nestle17,979.70 300.20
ONGC126.60 1.25
M&M816.40 7.85
Bajaj Finserv11,876.35 77.30
HUL2,403.60 12.45

Currency

CompanyPriceChng%Chng
Dollar-Rupee73.34750.03500.05
Euro-Rupee88.8900-0.0400-0.04
Pound-Rupee103.52300.22400.22
Rupee-100 Yen0.66690.00080.11