In a chat with ET Now, Hemang Jani, Senior VP, Sharekhan, talks about the Rs 1,380-crore contract Infosys has been awarded for developing and operating the technology platform for the proposed goods and services tax (GST).
ET Now: I know it is still early days to really comment on the deal that Infosys has struck on the GST rollout network, but does it seem like the tide is good for the Indian IT stocks in the near term time. Would Infosys be a top pick among IT stocks?
Hemang Jani: Absolutely. We think that after the impressive set of performance -4.5 per cent quarter-on-quarter dollar revenue growth in the first quarter – the momentum is pretty much visible.
For the second quarter as well, the recent analysts meet indicates a very strong growth. The quarter is traditionally a weak quarter for Infosys.
The company is on its dollar revenue guidance of about 12 per cent. We have seen that IT as a sector has underperformed in the last couple of months. But we believe that there is going to be some kind of a buying interest because of that.
Therefore, we continue to like Infosys.
While we do not have the estimates for the exact impact of the GST contract, we believe it would be miniscule in the overall scheme of things. Nonetheless, the contract could be a sentiment booster. Overall we like Infosys.
We think that there is a case for about 15 per cent uptick on the counter from the prevailing levels.
Source: The Economic Times