Indian IT Sector: How Much Stronger And For How Much Longer? Nirmal Bang 
A person uses a laptop computer. (Photographer: Andrey Rudakov/Bloomberg)

Indian IT Sector: How Much Stronger And For How Much Longer? Nirmal Bang 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

We continue to remain ‘neutral’ with a selectively positive view on IT stocks.

We believe that an acceleration in earnings growth to mid teen territory over FY21-FY23, driven by organic U.S. dollar revenue growth of 10-12% for tier-I players is on the cards.

This is against an approximately 6.8% earnings growth during FY17-FY20, which was driven by 7.6% U.S. dollar revenue growth and Ebit margin drop of 100 basis points.

Much of the pick-up in growth is priced in and we are being selective in the choice of stocks.

We think that the question on investors’ mind currently is ‘how much stronger can this growth be in the near term and how long can this double digit growth last?’.

Click on the attachment to read the full report:

Nirmal Bang Information Technology Sector Update 22 December 2020 .pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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