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Summary of Contents
SHAREKHAN
SPECIAL
Q4FY2007 IT earnings
preview
The street expectations have toned down
considerably in terms of both Q4 performance and the annual guidance
for FY2008, and the recent underperformance of the tech stocks
indicates that the same has already been factored in the valuations.
This essentially means that the negatives have been priced in,
leaving limited scope for downside. But positive surprises,
especially in terms of higher than expected annual guidance by
Infosys, are not ruled out. However, the continued strengthening of
the rupee and seasonal weakness in Q1 (due to wage hikes and
additional visa related cost) would continue to influence sentiments
on tech counters in the short run. We believe that any further
weakness would be an opportunity to accumulate the front-line tech
stocks and prefer Infosys and
TCS. |
