Does Accenture’s guidance indicate persistent weakness for Indian IT sector- Check JM Financial’s strategy on Infosys, TCS, Tech Mahindra and more
时间:2024-06-26 17:04:31 阅读(143)
Accenture’s numbers brought out some striking implication about the IT industry dynamics. The lower end of FY24 organic growth guidance (now slightly below 0-3%) implies no improvement even in H2. The management indicated no change in demand environment – persistent weakness in BFS, CMT and discretionary spend. Budget conversations, though not concluded, are still revolving around spend reprioritisation.
JM Financial expects Accenture’s demand may stay weaker for longer. “Though the Q1FY24 growth (+1% YoY cc), albeit within its guided band (-2% to +2%), was the slowest since pandemic. Interestingly, incremental deceleration over the past couple of quarters has come from Managed Services, a closer proxy for India IT Services demand. A soft Q2 guidance (-2% to +2%), despite a favourable comp, suggest trend reversal, if any, would be back-ended,” they highlighted.
According to them the sharp up-move in India IT Services stock after Fed’s recent dovish comments is implying faster demand inflection than what ACN commentary indicates, “Even Indian IT players’ 3QFY24 commentary will likely be cautious, in our view. Market’s optimism in that context appears a bit pre-mature. We will await better evidence,” JM Financial added.
猜你喜欢
- Black sea deal off- Crude sunflower import price rise 10%
- Buy Dixon, Wipro shares for gains; Bank Nifty may head to 38000 soon
- Rating- buy; Shoppers Stop- Pvt labels in focus
- BharatGPT- Akash Ambani drops key updates on Reliance Jio-IIT Bombay’s key AI project
- PSUs- The value buys in 2023, will the dream run continue in 2024-
- Quiet earnings season in Q3
- Buy L&T Technology Services, Hindalco stocks as Nifty fights resistance at 17350, support at 17000
- Bank Nifty hits record high
- Bond binge- India Inc, banks to raise Rs 30K crore this week