Technology Sector Check - Consensus Expectations On Growth Acceleration Will Likely Witness A Reset: ICICI Securities
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Technology Sector Check - Consensus Expectations On Growth Acceleration Will Likely Witness A Reset: ICICI Securities

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.

ICICI Securities Report

Our anti-consensus under weight IT stance in late December 2020 and the subsequent rating downgrades (Tata Consultancy Services Ltd., Tech Mahindra Ltd. etc.) witnessed heavy pushbacks given the then price momentum.

Then prevailing street views were largely built upon -

1. extrapolating recovery as long-term growth acceleration and

2. calls for further sector re-rating (even after 58% plus).

Despite the recent correction and under-performance, multiples still remain bloated and higher than global tech in many cases, notwithstanding inferior growth.

We now sense incremental caution in investor conversations in light of heavy NASDAQ / Forex volatility.

Even as broader markets re-rated due to lower rates, the growth – rerating asymmetry is more alarming in IT.

Click on the attachment to read the full report:

ICICI Securities Technology Sector Update.pdf

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