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Time Is Ripe To Buy Info-Tech Stocks: Edelweiss



Edelweiss has issued a research report in which it has argued that the sharp correction in Info-Tech stocks has created an opportunity to buy these stocks. Detailed reasoning has been given and a few top-quality stocks have also been identified

IT stocks have corrected sharply over the past couple of months led by an appreciating INR and portfolio shifts. We strongly recommend buying into IT companies at this juncture due to: (i) limited impact of INR appreciation (1.5-3.0%), which can be offset by robust domestic demand and a few concrete initiatives by the new government (restoration of STPI status, uniform taxes and improved relations with the US); (ii) lower multiples, almost close to historic lows of post Lehman crisis (refer table 2 and 3), in an improving demand environment; and (iii) huge cash balances that can be returned to shareholders via dividends or buy back, thereby improving RoE.

Click here to download the Edelweiss research report on I. T. Stocks

See also:

(i) What Is The Impact Of Rupee Appreciation On Pharma & InfoTech Stocks & Should We Buy Them? Daljeet Kohli

(ii) Pharma & InfoTech Stocks Plunge In NAMO Rally (Which Means We Have To Buy Them)

(iii) Take Advantage Of The Crisis In Infosys To Grab The Stock. 32% Gains Ahead: Daljeet Kohli

(iv) Take Advantage Of The Situation To Buy High-Quality Pharma & IT Stocks: Dipen Sheth, HDFC Sec

(v) Best Large-Cap & Mid-Cap InfoTech Stocks: ICICIDirect

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