Wipro vs TCS vs Infosys vs HCL Technologies: With the announcement of Wipro Q1 results 2024 on Friday, the fab four IT companies in India have declared their Q1FY25 results. While Tata Consultancy Services (TCS), Infosys and HCL Technologies managed to beat the market estimates, Wipro failed to meet the market expectations. In other words, Wipro has delivered the most weak numbers among the Indian IT majors. However, the situation still needs to be solved for those who want to buy either of these four IT stocks on Monday.
According to stock market experts, TCS and Infosys have given substantial quarterly numbers annually and sequentially, and their business outlook is also promising. However, HCL Tech delivered strong quarterly numbers, but its guidance for FY25 is weak. One can see TCS or Infosys shares as a potential stock to buy on Monday.
Speaking on Wipro's Q1FY25 results, Manish Chowdhury, Head of Research at StoxBox, said, “Wipro's Q1FY25 results reflect a sequential CC revenue contraction primarily owing to continued pressure on discretionary spending. Further, the company mitigated headwinds from wage hikes to report an expanded EBIT margin sequentially by focusing on cost initiative measures. The company recorded another quarter of total large deal booking over USD 1 billion, with the most significant win in recent years.”
"Looking ahead to FY25, Wipro has given a sequential guidance for revenue of -1.0% to +1.0% in CC terms, which makes us confident about the recovery of the company's growth and the overall demand environment," the StoxBox expert said.
On TCS results 2024, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, said, “TCS's consolidated revenue from operations was relatively flat for the April-June quarter, rising by 2.24% QoQ to ₹62,613 crore from ₹61,237 crore in the previous quarter. Its net profit fell by 3.17% QoQ to ₹12,105 crore from ₹12,502 crore.”
Goel said that Infosys saw its consolidated revenue from operations for the April-June quarter rise by 3.6% QoQ to Rs. 39,315 crore from ₹37,923 crore. Net profit fell by 20% QoQ to ₹6,374 crore from ₹7,975 crore.
"HCL Tech's revenue from operations fell by 1.55% to ₹28,057 crore in Q1FY2025, compared to ₹28,499 crore in the previous quarter. It reported a 6.35% increase in net profit to ₹4,259 crore compared to ₹3,995 crore in the last quarter," Amit Goel of Pace 360 said.
On which IT company has delivered the best Q1 results in 2024, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Wipro has failed to meet market expectations whereas the other three have managed to meet the market estimates. However, HCL Tech failed to give strong guidance for FY25. So, the main gamble is between TCS and Infosys. In my view, one should look at buying TCS shares ahead of Infosys shares on Monday as the business outlook of TCS for FY25 is more lucrative than any other Indian IT companies that have declared their Q1FY25 results.”
Speaking on the TCS share price target, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, "TCS share has recently displayed a bullish trend with a significant breakout above ₹4150 on the weekly chart. This breakout suggests strong upward momentum, making it an opportune time to consider initiating a buy position. By maintaining a stop-loss (SL) at ₹4150, investors can manage potential downside risks effectively. This investment's target price is ₹4600, indicating a potential upside from the current levels."
"Unlike TCS, Infosys has yet to exhibit a fresh breakout above its lifetime high. This lack of a breakout suggests that Infosys shares may offer a different upward potential than TCS shares. Investors might want to adopt a cautious approach and wait for clearer bullish signals before considering an investment in Infosys," Dongre said.
"Comparing Wipro and HCL Technologies, HCL Tech shares appear to have more room for an upward rally. Investors looking to capitalize on this potential can buy HCLTech with a stop-loss set at ₹1530. The target price for this investment is ₹1700, suggesting a promising upside and making HCL Tech an attractive buy option in the current market scenario," the Anand Rathi expert said.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
