5 IT Stocks To Buy As Per Emkay Global For Up To 28% Gains In 1 Year

It we be another weak session for the Indian markets with the Nasdaq index in overnight trade slumping over 2% and SGX Nifty indicating yet another weak trade in Thursday's session.

Now as reported Indian investors have been aggressive investors into the IT pack and there is weakness in the IT stocks in the US markets and it may impact IT stocks negatively here, Emkay global has suggested to buy IT stocks at the current levels for upside up to 28% gains.

Birlasoft: Buy for a target of Rs. 530

The small cap IT major in the December ended quarter reported consolidated income of Rs. 1084.66 crore . Total income at the firm has been at Rs. 1021.04 crore and up 21.01% from last year same quarter total income of Rs. 896.36 crore.

Tech Mahindra: Buy for a target price of Rs. 1730

The brokerage has a buy call on this large cap IT major for a price target of Rs. 1730 per share. The investment rationale for a buy call given in the scrip is that the company has internally split BFSI into BFS and Insurance to drive increased focus and accelerate growth. The company is committed to create USD1bn+ vertical in BFSI. The company is focusing on BFSI to drive higher growth and Q3 was soft as there was some degree of seasonality, some programs coming to an end and a timing issue. Demand environment remains strong and the company is seeing growth momentum across various sub sectors

HCL Technologies: Buy for a target of Rs. 1430

Again Emkay Global is bullish on the counter of HCL for a 1-year period with a target price of Rs. 1430. The company's December ended quarter consolidated total income has been at Rs. 22586 crore. Also, the company's net profit after tax in the latest quarter has been at Rs. 3448 crore.

Wipro: Buy for a target of Rs. 670

 In a one year period, the brokerage firm sees the IT stock to hit the below specified target price given the company's integration with Capco is doing well and company has built common governance on the large accounts. Wipro BFS and Capco together have won few deals together this quarter including a very significant transformation deal that typically it would have never won.

Infosys: Buy for a target of Rs. 2100

Infosys has been given a buy for an upside of 20.5% in 1-year at the current levels. The trigger for the stock as per the brokerage shall be growth momentum in the financial services vertical being strong in Q3. Also the company continued to see good deal pipeline for digital transformation and cloud initiatives.

 

IT stock	Current price	Target price	Potential upside
Birlasoft	414.8	530	27.70%
Tech Mahindra	1413.3	1730	22.40%
HCL	1153	1430	24.00%
Wipro	567.1	670	18.00%
Infosys	1742.85	2100	20.50%

Disclaimer:

Markets are highly volatile at the given juncture and the recommendations into the highly sought pack are as per the brokerage. So, do exercise high caution and act accordingly.

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