Kotak Securities Identifies 5 Promising IT Stocks Amid Q4 Challenges
Top IT Stocks To Buy Now: Kotak Securities Picks 5 Names To Watch
News 18
Image: News 18
Despite anticipated muted performance in the Indian IT sector for Q4 FY26, Kotak Securities identifies five stocks with strong growth potential. Key factors include a depreciation of the rupee boosting margins and attractive valuations following recent corrections.
- 01Indian IT sector expected to see muted Q4 FY26 performance due to global uncertainties.
- 02Rupee depreciation is projected to enhance margins for IT companies.
- 03Kotak Securities highlights five IT stocks with strong growth potential.
- 04Geopolitical tensions and AI disruptions pose risks to growth visibility.
- 05Wipro faces challenges with negative growth guidance and pricing pressure.
Advertisement
In-Article Ad
The Indian IT sector is projected to report a subdued performance in Q4 FY26, primarily due to global uncertainties and disruptions from generative AI (GenAI). However, Kotak Securities maintains a cautiously optimistic outlook, citing potential year-on-year earnings improvements driven by a 6.5% depreciation of the Indian rupee against the US dollar, which is expected to boost margins for many IT firms. Despite these currency tailwinds, challenges such as geopolitical tensions, particularly the Iran conflict, and delayed decision-making by clients are impacting growth visibility.
Kotak Securities has identified five IT stocks that stand out based on their valuation and growth potential. These include Tata Consultancy Services (TCS), which is expected to lead growth among large-cap firms; Infosys, with a projected revenue growth of 3-5% for FY27; HCL Technologies, also expected to grow by 3-5%; Tech Mahindra, noted for its strong deal momentum; and Coforge, which trades at an attractive valuation of approximately 18x FY28 earnings. In contrast, Wipro is likely to guide for a -2% to 0% growth, facing significant pricing pressure and deal delays. Analysts caution that escalating geopolitical tensions and rapid advancements in GenAI could further complicate the sector's recovery.
Advertisement
In-Article Ad
The performance of these IT stocks could influence investor sentiment and market dynamics, affecting employment and growth in the tech sector.
Advertisement
In-Article Ad
Reader Poll
Do you believe the Indian IT sector will recover in the next quarter?
Connecting to poll...
Read the original article
Visit the source for the complete story.


