MOSL: Morning India (2/July/21): 1. Technology | 1QFY22 Preview (Sustained demand tailwind to drive growth in 1QFY22); 2. Automobiles (Jun’21: PV/Tractor wholesales driven by demand pull)
MOrning India (2/July/21):
oday’s top research idea
Technology | 1QFY22 Preview: Sustained demand tailwind to drive growth in 1QFY22
- We expect a median USD organic growth of 3.3% CC QoQ in 1QFY22E for our IT Services coverage universe.
- Despite a high base effect in 2HFY21, a strong demand environment and deal wins should result in continued strength across largecap and midcap IT companies (with a few exceptions).
- We expect a dip in margins for most IT Services companies (60bp/110bp for aggregate Tier I/II players), led by a second wage hike and an increase in attrition/hiring.
- We expect wage hikes to be in the 100-350bp range for large/midcap IT companies.
- While the sector valuation remains elevated, we remain positive as double-digit topline growth in the medium term should support these valuations.
- Among largecaps, we prefer INFO/HCLT. In midcap IT, we prefer LTTS, MPHL, CYL, and ZENT.
Piping hot news
UPI transactions surge to Rs 5.47 lakh crore in June
UPI enabled digital transactions surged 11.6 per cent month-on-month to Rs 5.47 lakh crore in June this year, NPCI data showed on Thursday. In terms of numbers, there were as many as 2.80 billion (280 crore) transactions during the month under review, as against 2.53 billion (253 crore) in May, according to the data.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.