Infosys, Mphasis among top stock picks by HDFC Securities in IT sector

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As hiring in slowly picking up in the Indian IT companies and with the strong deal momentum, brokerage and research firm HDFC Securities has listed out its preferred picks in the IT sector. It maintained its positive view on information technology (IT) sector and its preferred picks are Infosys, HCL Tech, Mphasis and Sonata.

Infosys: It has a Buy rating with target price of 1,730 per share

HCL Tech: ‘Buy’ rating with 1,185 target price.

Mphasis: ‘Buy’ rating with target price of 2,680 per share.

Sonata: ‘Buy’ stance with 805 target price.

The brokerage has Add ratings on TCS, Wipro, LTI (Larsen & Toubro Infotech), Mindtree, Tata Elxsi, Persistent Systems, and Cyient. It also has buy stance on other IT stocks like Zensar, Mastek. However, HDFC Securities has ‘reduce’ recommendation on LTTS (L&T Technology Services).

Highlighting the strong deal momentum in the sector, the brokerage said that both managed services (8% QoQ) and as-a-services (13% QoQ) clocked all-time high deal wins. It also said that the pipeline continues to remain strong. ‘’Investment by the enterprises on talent acquisition has accelerated and huge headcount addition is expected in the coming quarters by all the service providers,’’ the note said.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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