Motilal Oswal - MOSL: Morning India (4/October/21): 1. Technology 2QFY22 Preview (Strong 2Q growth momentum despite supply challenges); 2. HDFC; 3. Cummins India; 4. Federal Bank; 5. CSB Bank; 6. Automobiles; 7. EcoScope

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Motilal Oswal

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MOSL: Morning India (4/October/21): 1. Technology 2QFY22 Preview (Strong 2Q growth momentum despite supply challenges); 2. HDFC; 3. Cummins India; 4. Federal Bank; 5. CSB Bank; 6. Automobiles; 7. EcoScope

MOrning India (4/October/21): 1. Technology 2QFY22 Preview (Strong 2Q growth momentum despite supply challenges); 2. HDFC; 3. Cummins India; 4. Federal Bank; 5. CSB Bank; 6. Automobiles; 7. EcoScope

Today’s top research idea

Technology 2QFY22 Preview: Strong 2Q growth momentum despite supply challenges

We expect a median growth of 5.4% CC QoQ in 2QFY22 in our IT Services coverage universe. Tier II IT should continue to outpace Tier I IT. INFO will lead organic growth within Tier I and MTCL within Tier II.
Expect dip in margins for most companies on supply-side pressures, along with a wage hike impact. TCS and COFORGE are exceptions with a margin expansion.
While sector valuations remain elevated, we remain positive as the demand environment continues to improve. We prefer Tier I IT over Tier II peers given their relative valuation attractiveness and tendency to narrow down the valuation differential over time. Among Tier I IT, we like INFO and HCLT. In Tier II IT, we prefer LTTS, MPHL, ZENT, and CYL.

Piping hot news

Rebound in India’s manufacturing sector PMI offers little comfort

Business activity in India’s manufacturing sector continues to recover from the after-effects of the second wave of the coronavirus pandemic. The latest IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) survey showed that the headline index stood at 53.7 in September, up from 52.3 in August. A bounce back in new orders and output sub-components of the PMI aided the up move in the headline index.

04/10/2021 EN

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Motilal Oswal

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.

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MOSL: Morning India (4/October/21): 1. Technology 2QFY22 Preview (Strong 2Q growth momentum despite supply challenges); 2. HDFC; 3. Cummins India; 4. Federal Bank; 5. CSB Bank; 6. Automobiles; 7. EcoScope

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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