Indian IT companies Result and Valuation comparison

Stocks of software service companies in India has been on tear away rally since the beginning of this year and top 5 biggies (TCS, Infosys, Wipro, HCL Tech, Tech Mahindra) are up anywhere between 50% to 75% YTD. 

The run up in IT stocks in India happened on the back of two primary reasons - better demand outlook in US & Europe and massive depreciation of Indian currency vis-a-vis USD-GBP-EUR. CNX IT index is up more than 50% since January 2013.

CNX IT Index 3 year Chart

Goldman Sachs Downgrades Top Indian IT Companies

Goldman Sachs has cut the price target for India's top tier IT companies after the announcement of dissmal jobs data from US on 2nd Sep 2011 which has triggred the fear of US falling into recession again. 

WIPRO Q1 FY 2011-2012 Result Analysis

Wipro today reported a growth of 1.23% in consolidated net profit for the quarter ended June 30, 2011, to Rs 1,334.9 crore. Net income from sales during the reporting quarter stood at Rs 8,564 crore, as against Rs 7,236.4 crore in Q1FY11, up 18.34%. 

Cognizant overtaking Wipro

Cognizant Technology Solutions Ltd. reported stellar set of numbers on 3rd May showing a revenue growth of 43% to $1.37 Billion from $959.7 Million in the year ago period.

Cogniant is anticipating a revenue of $1.45 Billion in Q2. For full year Cognizant is expecting to clock a revenue of close to $6 Billion.

With this revenue outlook, Cognizant will overtake India's third largest software exporter Wipro, which has a target of $1.39 billion to $1.42 billion revenue for the April-June quarter. For full year Wipro is expected to clock a revenue of $5.8 Billion.