No Negative Surprises Expected From Major IT Companies – Hemang Jani


As we enter into the earnings season, Hemang Jani, Equity Strategist & Senior Group VP at MOFSL, advises that investors should expect positive results from the banking sector, both PSU and private banks. In his analysis, Jani looks at the latest financial updates of HDFC Bank and other prominent names like Mahindra Fincorp, Poonawalla Fincorp, and Federal Bank.

When it comes to large cap IT companies, Jani remarks that despite a more muted outlook for the IT sector overall, the large cap companies such as Infosys, TCS, and HCL Tech are likely to show relatively okay numbers. This is because financial verticals have stabilized, the entire sector under-performed last year, and the valuations are now more comforting for investors.

Jani also comments on Bajaj Finance and HDFC, saying that although the numbers from Bajaj Finance look okay, valuations suggest there is still a gap between them, while higher interest rates in the housing finance sector might have some repercussions on HDFC.

When it comes to consumption as a space, Jani advises investors to adopt a stock-specific approach, with a positive view on companies like Godrej Consumer, HUL and Dabur. Jani also notes that although the sector is highly valued, investors should look out for the commentary and outlook for FY24 for more clarity.

Motilal Oswal Financial Services Ltd (MOFSL) is a provider of financial services and products in India, founded in 1987. MOFSL is engaged in researching and providing advice to individuals and institutions in Stock Broking, Mutual Funds, Wealth Management, IFA Business, Investment Banking, Commodity Broking and PMS, through their nationwide and international offices.

About Hemang Jani
Hemang Jani is Equity Strategist & Senior Group Vice President at MOFSL. He has also been Advisor at LOYAL Group, actively researching Indian and Global Equity Markets. Jani holds a Bachelor’s in Management (Mgmt) from Sydenham Institute of Management Studies, Research and Entrepreneurship Education (SIMSREE) and has experience in the financial services and stockbroking industry.