IT Sector Looks Stronger In Near Term; Raising Target Prices, Says Nirmal Bang
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IT Sector Looks Stronger In Near Term; Raising Target Prices, Says 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 raise revenue and earnings estimates and consequently target prices across our coverage universe as we see FY21-FY23 demand stronger than we had anticipated, with significant transfer of legacy assets (both employees with legacy skill sets and technology assets which are largely on-premise) to outsourcing vendors being the key driver.

We have seen a glimpse of that from the number and nature of large deals that have been signed by Tier-I players in the last few months.

We see the elevated valuation of individual stocks (which are at 10-12 year peaks) holding up in the context of the accelerated organic revenue and earnings growth that we anticipate in the FY21-FY23 timeframe relative to FY15-FY20.

Click on the attachment to read the full report:

Nirmal Bang Information Technology Sector Update- 29 December 2020.pdf

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