Chakri Lokapriya on why one should still buy IT stocks
The IT sector is likely to experience an earnings cut in the next 2-3 quarters due to the recent turbulence in US banks leading to a slowdown in contract negotiations and new orders. However, the overall growth outlook for the top line is better than the 5-year average and the five-year average multiples look reasonable at this point in time. Margins are expected to improve as attrition moderates.
