Synopsis: The analysis examines the Q4 2024 performance of major Indian IT firms—Tata Consultancy Services (TCS), HCL Technologies (HCL Tech), Wipro, and Infosys. TCS stands out for its resilience in deal management, while Infosys and Wipro face challenges like delayed deal ramp-ups. HCL Tech experiences margin pressures due to a slowdown in its high-margin software products. Investors are advised to consider revenue trends and price patterns when deciding on post-Q4 investments.
Recommended IT stocks following Q4 2024 results: Among Infosys, TCS, HCL Tech, and Wipro, experts favor Infosys and Wipro shares for their more favorable price patterns over the medium to long term.
Navigating IT stock choices post-Q4 2024 earnings: With the unveiling of Q4 results by Indian IT giants such as Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies, selecting the most promising investment may pose a challenge. Market analysts suggest that while TCS has outperformed Wipro, Infosys, and HCL Tech in Q4 results, the long-term potential of HCL Tech, particularly its accelerated adoption of AI, remains noteworthy.
Evaluation of Q4 2024 performance: Providing insights into the Q4 2024 performance of major Indian IT companies, Amit Goel from Pace 360 highlighted TCS's 9% increase in consolidated net profit to INR12,434 crore, along with a 3.5% rise in revenue. Meanwhile, Wipro saw an 8% decline in net profit to INR2,835 crore and a 4% decrease in revenue to INR22,208 crore. Infosys reported a net profit of INR7,975 crore and total revenues of INR37,923 crore for the quarter. HCL Technologies recorded a slight increase in net profit to INR3,986 crore and a 7% rise in revenue to INR28,499 crore, emphasizing its strong performance amidst challenging circumstances.
Comparison of Q4 results: DK Mudaraddi, a Research Analyst at Stoxbox, highlighted TCS's resilience across various metrics compared to Infosys and Wipro, attributing TCS's success to its effective management of megadeals and continuous growth in deal pipeline. Despite Wipro and Infosys facing challenges in timely deal ramp-ups and subdued discretionary spending, both witnessed declines in financials. HCL Tech faced margin pressures due to a slowdown in its high-margin software products business, with a focus on efficiency and utilization rate to enhance margins amidst declining demand.
Analysis for potential investments: Sugandha Sachdeva, Founder of SS Wealth Street, suggested Infosys as the top pick due to its strong performance and favorable price patterns, potentially reaching INR1600 in the near term and beyond. Wipro emerged as the second pick with the potential to surpass INR615 in the long term. TCS, although displaying positive trends, was placed third, with HCL Tech following suit, suggesting a buy-on-dips strategy as long as it maintains above INR1250 on a closing basis.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
