Software & Services share price target

During Q2FY21, BSE IT index (+31.7%) has significantly outperformed BSE SENSEX (9.2%). Amid the pandemic, the IT sector has seen good pick-up in demand for digital solutions resulting in improvement in growth outlook for most of the companies within the sector. This has reiterated sector's ability of dealing with headwinds which coupled...

We appreciate your support in the Asiamoney Brokers Poll 2020 We continue to see a limited read-through from Accenture's Q3FY20 results as always. The company reported a 1.3% YoY local currency growth in Q3FY20 (within the guided range of -2% to +2%), while narrowed its full-year outlook for FY20 now to 3.5-4.5% YoY local currency growth (vs. 3-6% earlier). Growth was largely led by Health and Public Services verticals (+12% YoY local currency, This report is solely produced by Emkay Global. The following person(s) are responsible for the...

visa holders currently in the US, nor does it affect renewal or change of status of existing visa holders inside US. No changes in OPT (optional practical training program) applicable to STEM...

to revenue growth, the depreciating domestic currency against dollar might reduce some pain. The shutdown across the world, highlight the concept of work from home and in coming days, corporate might rush into the arms of technology, leading to an accelerated trajectory for enterprise-wide digital adoption. With the situation surrounding Covid-19...

As per ISG, Q1CY20 managed services deals a more relevant indicator for Indian IT services players were on track for 9-10% YoY growth pre-Covid-19.

Rupee depreciation to provide cushion to margins Among our midcap universe, we expect L&T; Infotech to lead the dollar revenue growth (3% QoQ) led by deal ramp ups. On the EBITDA margin...

On a consolidated basis, IT companies are expecting near term pain (at least in H1FY21E) led by a lockdown, pricing pressure, delay in deal signing and furloughs. Most of them expect a recovery to begin from H2FY21E and have assumed business as usual in new deal signing. However, we believe there will be a delay in new deal signings while recovery time can also stretch beyond H2FY21E. Further, in terms of margins, the company expects headwinds due to lockdown cost, pricing pressure, lower utilisation, cross currency headwinds and furloughs while tailwind is led by rupee...

As highlighted in our previous report, we maintain our bullish stance on Wipro, Infosys, TechM, L&T; Infotech, Sonata Software, Firstsource and Persistent With the situation surrounding Covid-19 spread and control still unclear, the managements of major companies are opting to wait for a few more days to provide a clear indication of the impact of the virus outbreak on the business. Recent commentary from the management of one of the Indian IT companies indicates a likely delay in decision making by clients and...

Read-through from Accenture's Q2FY20 (FY ending Aug'20) results for Indian IT: Possible downside risks to H1FY21 growth estimates at the least Accenture (Unrated; CMP US$151) reported its Q2FY20 (fiscal year ending Aug'20) results earlier today. While the stock has reacted positively to the results (stock up ~3% in trade today), we note that this comes after a 25%+ YTD correction in the stock, driven by Covid-19 led correction across global markets. The company has cut down its revenue growth guidance and earnings outlook for FY20, noting the uncertainties on demand emanating from the pandemic outbreak despite record...