HDFC Securities sees muted Q4 for IT pack; picks Infosys, HCL and 5 more stocks for up to 57% gains
1/8
IT Growth Outlook
The Indian IT services sector braces for another muted quarter in Q4FY26E, with tier-1 players' growth projected at -1.1 to +0.9% QoQ CC and mid-tier companies' growth ranging from -1.8% to +3.4%, HDFC Securities said in a note. While valuations have reset to pre-COVID levels and turned attractive post-correction, the sector's growth recovery now hinges on pure execution capability as new deals are mostly outcome-driven, the brokerage said. It has recommended a 'Buy' view on seven stocks. Take a look:
2/8
Buy Infosys around Rs 1,276 | Target: Rs 1,600 | Upside: 25%
Adjusted Q4 PAT seen at Rs 7,610 crore, up 0.3% QoQ and 8.2% YoY, while revenue at Rs 46,699 crore, up 2.7% QoQ and 14.1% YoY.
3/8
Buy HCL Technologies at Rs 1,354 | Target: Rs 1,520 | Upside: 12%
Adjusted Q4 PAT seen at Rs 4,850 crore, up 1.1% QoQ and 12.6% YoY, while revenue is expected at Rs 34,416 crore, up 1.6% QoQ and 13.8% YoY.
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4/8
Buy LTIMindtree at Rs 4,107 | Target: Rs 5,560 | Upside: 35%
Adjusted Q4 PAT seen at Rs 1,471 crore, up 53.3% QoQ and 30.3% YoY, while revenue at Rs 11,229 crore, up 4.2% QoQ and 14.9% YoY.
5/8
Buy Birlasoft at Rs 350 | Target: Rs 435 | Upside: 24%
Q4 PAT seen at Rs 133 crore, down 8.2% QoQ and up 9.2% YoY, while revenue at Rs 1,365 crore, up 1.3% QoQ and 3.7% YoY.
6/8
Buy Sonata Software at Rs 221 | Target: Rs 330 | Upside: Rs 49%
Q4 PAT seen at Rs 117 crore, down 14% QoQ and up 8.7% YoY, while revenue at Rs 752 crore, up 1.8% QoQ and 7.1% YoY.
7/8
Buy Happiest Minds around Rs 393 | Target: Rs 490 | Upside: 25%
Q4 PAT seen at Rs 62 crore, up 9.7% QoQ and 47.3% YoY, while revenue at Rs 610 crore, up 3.8% QoQ and 12% YoY.
8/8
Buy Mastek at Rs 1,463 | Target: Rs 2,300 | Upside: 57%
Adjusted Q4 PAT seen at Rs 103 crore, down 5.1% QoQ and up 15.2% YoY, while revenue at Rs 950 crore, up 4.9% QoQ and 4.9% YoY.