Weakness in BFSI discretionary spending in the US is likely to result in sequential momentum loss. Pull back in discretionary spending will hurt margins too, in our view. We now expect constant currency (CC) revenue growth of 2.7% in 2QFY17 v/s 3.6% earlier, and cut our FY17E/18E USD revenues by 1%/1.7% and earnings by 2.6%/3.8%.Their revised target price of INR2,500 discounts FY18 EPS by 17x, and implies 8% upside. Maintain Neutral.
Motilal Oswal