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videos | IST

Indian tech going through a repeat of 2004-2008 timeframe, says JM Financial

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India Inc kicked off the earnings season with a mixed bag of earnings from the country's three largest IT service exporters: Tata Consultancy Services (TCS), Infosys and Wipro. Manik Taneja, IT-Services-Research Analyst at JM Financial Institutional Securities discussed the numbers as well as shared his outlook.

India Inc kicked off the earnings season with a mixed bag of earnings from the country's three largest IT service exporters: Tata Consultancy Services (TCS), Infosys and Wipro. Manik Taneja, IT-Services-Research Analyst at JM Financial Institutional Securities discussed the numbers as well as shared his outlook.
He believes Indian technology space is going through a repeat of 2004 to 2008 kind of a timeframe. If one looks at the valuation multiples of offshore technology companies relative to Accenture at that point of time, these companies used to trade at a premium to Accenture and over the last five-six years, these companies have started to trade at discount to Accenture. Given the underlying industry dynamics, there is a case for both Infosys and TCS to reduce the gap relative to Accenture.
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For the full interview, watch the accompanying video.