Homemarket News

    Tech sector sees hiring boom as recruitment more than doubles in last 12 months: Edelweiss Securities

    market | IST

    Tech sector sees hiring boom as recruitment more than doubles in last 12 months: Edelweiss Securities

    Mini

    Sandip Agarwal, Research Analyst - Institutional Equities, Edelweiss Securities, told CNBC-TV18 that hiring has gone up by 2-3 times in the technology industry over the last 12 months. Explaining his bullish stance on the IT sector, he said that it is undergoing a healthy correction in a long-term bull run.

    wealth-desk wealth-desk

    Buy / Sell Mindtree share

    In an interview with CNBC-TV18, Sandip Agarwal, Research Analyst - Institutional Equities, Edelweiss Securities, said that there's a hiring boom in the technology sector. In fact, recruitment in the space is up 2-3 times over the course of the last 12 months, he shared.
    "The data of last 12 months of recruitment shows that it is 3x, 2x for most of the companies," he said.
    On the tech sector, he said that it is seeing a healthy correction in a long-term bull cycle. He added that some time correction in tech stocks is likely.
    "This is this healthy correction or a short-term correction in a very long cycle. I think there is some time correction and there is some concern of supply which will get resolved in the next few months and then these stocks will start moving," he added.
    Also Read:
    Mindtree posted its Q4 earnings. The Larsen & Toubro IT company reported a 49 percent year-on-year (YoY) jump in net profit at Rs 473.1 crore for the fourth quarter ended March 31, 2022. In the corresponding quarter last year, the company had posted a net profit of Rs 317 crore.
    Mindtree's consolidated revenue from operations grew by 37.4 percent to Rs 2,897.4 crore during the quarter under review from Rs 2,109.3 crore in the corresponding quarter of 2020-21.
    Sharing his insights on Mindtree post its Q4 results, he said that some short-term challenges on the supply side could be a possibility.
    "We will see temporary, short-term challenges only on the supply side. And if you see yesterday's numbers of Mindtree also, broadly, they were in line with expectation on all fronts, and the commentary was slightly better," he said.
    Agarwal remains optimistic on L&T Infotech (LTI) stock. He expects a profit after tax (PAT) growth of 25-30 percent from the company.
    "If LTI put a 30 percent PAT growth, which I believe will happen, then we are looking at 26-27 times for a company, which is growing at more than 20 percent and PAT growth of 25 percent probably once the attrition issue gets resolved. So a ratio of 1-1.2 times for such good companies is not very expensive," he explained.
    Agarwal believes the price run is too sharp in Tata Elxsi even though it’s a good company.
    "I think the stock has run up quite a bit. So I think this price run up is too sharp to justify a buy or even a hold. But it's a very good company, great management. So for a long-term investor, it should not matter. But in near-term, I think this price may see a good correction from here," he said.
    Watch the video for the full interview.
    Catch all stock market updates here
    next story

      Market Movers

      View All
      CompanyPriceChng%Chng