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BoB Capital Markets Lists Two Large Cap IT Sector Stocks With "Buy" Call For High Returns
BoB Capital Markets, a leading brokerage firm in India, in its equity report on IT Sector has picked 2 Leading large-cap IT stocks, namely Infosys Ltd (INFO) and HCL Technologies Ltd (HCLT).
Commenting on the IT sector, the brokerage said, Macro uncertainty inducing cautious IT budget spends and a sharper focus on cost optimisation. Capex moderation by tech giants (Google, Microsoft) a clear indicator of near-term weakness in cloud migration. Despite the challenging backdrop, deal wins and pipeline commentary remain strong for Indian IT players; prefer large-caps over mid-caps.
Prefer large-caps over mid-caps, Buy INFO & HCLT
BoB Capital Markets said, "We have already factored in the postponement of product development and large digital transformation projects, as well as slowing demand for hyperscalers that will impact the revenue growth of IT services players. We prefer Indian stocks that are less vulnerable to the slowdown and that will continue to gain market share even in a weak economic environment. Accordingly, we retain our preference for large-caps - INFO (BUY, TP: Rs 1,760) and HCLT (BUY, TP: Rs 1,240) in that order, over mid-caps."
1. Infosys Ltd.
The stock is currently trading at Rs 1,550.65 apiece. If you buy the stock at the current market price considering the given target price of Rs 1,760 apiece, it could give a return of up to 14%.
The stock's recorded its 52 week low on 26 September 2022 at Rs 1,355 apiece and 52 week high on 17 March 2022 at Rs 1,923.30 apiece, respectively. It has a market capitalisation of Rs 6,49,115 crore.
The stock has fallen 2.09% in 1 week, and 4.86% in 3 months, respectively. It has fallen 7.6% in 1 year. It has given 94.84% positive return in 3 years and 168.36% in 5 years, respectively.
2. HCL Technologies
The current market price of HCL Technologies is Rs 1,094.85 apiece. Considering the given target price of Rs 1,240 apiece, the brokerage claims a potential upside of 14% if buy the stock at the current market price.
The stock recorded its 52 week high at Rs 1,215 apiece on 17 March 2022 and 52 week low at Rs 877.35 apiece on 15 July 2022, respectively. Its market valuation is Rs 2,97,105 crore.
The stock declined 1.32% in 1 week, 3.78% in 1 month, and 3.08% in 3 months, respectively. It declined 0.34% in 1 year. In 3 years it gained 83.96% and in 5 years it gained 129.14%, respectively.
Disclaimer
The stocks have been picked from the brokerage reports BoB Capital Markets. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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