CLSA on IT sector: Downgrades TCS and HCL Tech; maintains ratings on these IT giants; shares fall

CLSA on IT sector: Brokerage CLSA on Monday issued ratings for a number of leading Indian IT companies, downgrading the likes of Tata Consultancy Services (TCS) and HCL Tech, while maintaining ratings for Infosys, Tech Mahindra, LTI Mindtree and Wipro. In this write-up, we will take you through CLSA's ratings on IT companies, its share price targets, and the current stock prices of IT stocks on BSE.    

CLSA on TCS 

The brokerage has downgraded India's largest IT company to 'sell' from 'underperform' with a share price target of Rs 3925.

The stock of TCS ended the day's session down by 1.72 per ent, or Rs 70.25, at Rs 4011.35.

CLSA on HCL Tech 

CLSA has downgraded the IT firm to 'sell' from 'underperform'. It has given a target price of Rs 1536 for the company's shares.

HCL Tech ended the trading session on Tuesday lower by 1.05 per cent, or Rs 17.20, at Rs 1619.65.

CLSA on Infosys

The brokerage has maintained an 'outperform' rating on the company, giving a target of Rs 1741.

Infosys closed the day down by 1.93 per cent, or Rs 31.65, at Rs 1606.20.

CLSA on Wipro 

CLSA has maintained a 'sell' rating on the IT giant, with a target price of Rs 441.

Wipro also ended the session down by 1.34 per cent, or Rs 6.95, at Rs 513.30.

CLSA on Tech Mahindra 

CLSA has maintained an 'outperform' rating on the IT company, with a target price of Rs 1518.

Tech Mahindra was down by 0.78 per cent, or Rs 10.00, at Rs 1270.10.

CLSA on LTIMindtree 

The brokerage has maintained a 'sell' rating on LTIMindtree.

It has fiven a target of Rs 5281 for the company's stock.

LTIMindtree closed the trading session on Tuesday lower by 1.63 per cent, or Rs 85.00, at Rs 5131.35.

CLSA's views on IT sector

The brokerage says that a weak growth outlook for 2024 has still not been factored into valuations.

The growth guidance of HCL and Infosys will be a negative catalyst for other companies.

CLSA further says the outlook on banking, retail, and telecom verticals in 2024 will be the same as in 2023.

The brokerage says that there is still no sign of strength from the guidance given by global companies.