Tag: HDFC Securities

Budget 2024: Exporters, industry expect measures to increase India’s global competitiveness

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With around a week to the interim budget, industry experts from various sectors anticipate inclusive development, infrastructural expansion, digital payments, green projects, and self-reliance will continue to get a push. Exporters and industries seek more measures to increase India’s global competitiveness and are calling it the manufacturing moment. 

Bharat Dhawan, Managing Partner, Mazars in India, predicts that capital expenditure will continue to remain strong, with further allocations in the construction of roads and railways taking center stage.

Dhawan says, “High hopes are pinned towards green hydrogen in the energy sector, as well as for championing the production of EVs in automotive. The agricultural sector can also expect sops in view of current climate and inflationary pressures, and the government may take steps to cut domestic prices and boost insurance.”

Dhiraj Relli, MD & CEO, HDFC Securities reckons that the major policy reforms and announcements may get postponed to the regular budget due in June/July 2024, even as there would be some buildup of expectations ahead of the vote on account.

Relli emphasised that the capex and fiscal consolidation paths followed in the vote on account would be closely monitored given their impact on growth and interest rates. The government will have to maintain a balance between the capex and fiscal consolidation, as a higher capex could postpone the journey of the latter. 

“The government is likely to stay on the fiscal course-correction glide path in the interim budget for FY25, shunning populist spending or incentives ahead of the summer general election,” said Relli.

Some SOPs for women and youth could be announced with minimal impact on the deficit after SOPs for the poor and farmers have been announced time and again. Relli expects the capital markets to get a little excited by the vote of accounts, however, the market may wait for the regular budget and the general election outcome before getting very bullish.

Sujit Bangar, CEO at Tax Buddy, pointed out that the government has been trying to simplify tax compliance as two tax regimes have created confusion amongst taxpayers. The upcoming budget should amalgamate into one tax regime through the overall rationalisation of tax rates.

Amrit Acharya, CEO and co-founder at Zetwerk, called the present day the manufacturing moment of India, which needs to be seized with a vision of the next 25 years. 

The economy must look beyond ‘Make in India‘ and forge a self-reliant ecosystem through R&D investment, cutting-edge clean technologies, and robust skilling programs. Acharya has suggested that the government must bridge the gap between established manufacturers and new-age companies through a level playing field.

India must bridge the gap between established manufacturers and new-age companies through a level playing field to explore its full potential, Acharya added. 

Akihiro Ueda, CEO of Terra Charge, looked optimistic that the government will continue to support the EV ecosystem through favorable policies, subsidies, and infrastructure development. This will also prove significant for India’s environmental goals. The EV industry has received a significant boost through initiatives like the production-linked incentives (PLI) scheme.

Akash Sinha, CEO and Co-Founder, Cashfree Payments, stressed that the government should push for initiatives that aim to focus on increasing penetration of digital payments in regions in tier-2 cities and beyond.

“There is a call for the implementation of a standardized KYC framework across all financial services, aiming to enhance efficiency and promote financial inclusion in a secure way. Overall, the budget should also announce some provisions to ease the financial burden on fintechs and provide tax-saving benefits to startups in the sector,” said Sinha.

MobiKwik’s co-founder and CEO, Bipin Preet Singh, suggests that we could foresee incentives for fintechs that provide lending solutions beyond Tier 2 and Tier 3 cities.

Singh believes that the upcoming Union Budget will further drive financial inclusion by increasing the credit corpus for MSMEs, which includes extending support to microfinance institutions (MFIs) and small finance banks (SFBs).

“We expect the budget to provide incentives that encourage fintechs to drive further innovations in other aspects of banking like credit, investments, savings, and advisory. We also expect digital lending, especially  small-ticket loans, to grow significantly with the proper checks and balances in place to protect borrowers,” said Singh.

Vikram Agarwal, Managing Director, Greendot Health Foods Pvt. Ltd, the company that owns the popular Nachos brand, has requested the government allocate funds for export incentive schemes in the food sector, coupled with subsidies to facilitate overseas participation in major food shows.

Apparel Export Industry 

The Apparel Export Promotion Council (AEPC) has pitched to enhance the competitiveness of RMG exports in India. Mithileshwar Thakur, Secretary General, AEPC, said, “India is on the cusp of being the fastest-growing economy, and trimmings and embellishments under the Import of Goods at Concessional Rates of Duty Rules (IGCR Rules) will help the sector.”

The operations involved in the garment export trade require various kinds of quality trimmings and embellishments (tags, labels, stickers, belts, buttons, linings, inter-linings, etc.) to ensure the desired functionality and aesthetics of garments in the global market. In order to maintain their brand image, foreign buyers insist on maintaining consistency and quality and avoiding the use of counterfeits. APEC has also requested duty exemption for the following items: draw cord, elastic band or tape, metal tabor stopper or clip, tape, velcro tape, leather badge, die set, D ring, etc.

Also, the sector should be allowed a minimum waste at 10% under the IGCR Rules for import of trimmings and accessories by issuing an appropriate notification. “Apart from this, an increase in the rates to 5% for All Exporters under the Interest Equalization Scheme will boost the sector. The industry has requested the government to consider tax concessions to apparel manufacturers adopting ESG and other international quality standards and compliances,” Thakur added.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amazon inks partnerships with HDFC Securities, TCS and Tech Mahindra as it bets big on India’s enterprise market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amazon Web Services (AWS) announced newly forged partnerships with HDFC Securities, Tata Consultancy Services (TCS) and Tech Mahindra during its annual tech conference, Re:Invent.

While HDFC Securities Ltd has built its latest trading app, HDFC Sky, on the AWS cloud platform, the TCS partnership comprises a generative AI practice with AWS that it hopes will aid businesses make good on opportunities. Tech Mahindra, interestingly, has partnered with AWS to build a sports cloud platform to offer immersive digital capabilities for sports organisations and immersive experiences for sports fans.

Tata Consultancy Services’ partnership with AWS will see India’s top IT major launch its AWS generative AI practice to enable other businesses to capitalise on any potential for AI that they may possess. TCS has said it is already in the process of training over 1 lakh employees on generative AI, with the sole purpose of enhancing their expertise and certifying over 25,000 of these employees. The TCS-AWS generative AI practice, the company said in a release, could potentially enable enterprises to scale up suitable solutions for varying business needs using AWS’ services like Amazon Bedrock.

“AWS helped us create a culture of builders within HDFC Securities by enabling us to rapidly experiment at a lower cost so that we can innovate on behalf of our customers,” said Sandeep Bhardwaj, Chief Operating and Digital Officer at HDFC Securities, in a statement on HDFC Sky.

“Thanks to the scalability and reliability of AWS, we have effortlessly catered to a rapidly expanding customer base of tech-savvy investors,” he added, “We are pleased to have significantly reduced our time to market for pioneering services like HDFC SKY.”

Serving 75 million customers, the HDFC Securities app helps in user-friendly trading of shares, commodities, futures, currencies, IPOs, mutual funds and ETFs. The company estimates that it has cut down on infrastructure and management costs to the tune of 50% by building HDFC Sky on the AWS platform as opposed to in-house infrastructure.

On its part, Tech Mahindra foresees data-driven insights that it hopes to garner from the AWS platform as a key component to its plan of enhancing sports consumption and personalising sports-viewing experiences. “Our collaboration will offer the broadest and deepest set of cloud services and transform how fans interact with their favourite sports, which can create a dynamic and captivating experience for viewers,” said Jagdish Mitra, Chief Strategy Officer and Head of Growth at Tech Mahindra.

The IT major foresees its newly forged AWS platform as a potential disruptor too, with Mitra highlighting that it could lead to opportunities for sports organisations and franchises to offer enhanced and content-driven fan engagement, which could lead to potential for monetisation and commerce.

Big names in Indian tech partnering with AWS are a testament to Amazon‘s cloud business seeing a lucrative market for enterprise clients in India. Speaking exclusively to CNBC-TV18, AWS enterprise strategist Clarke Rogers said that quicker scaling up and competitive pricing are the major catalysts for enterprise companies to embrace cloud migration.

“The cloud allows (these companies) to compute at a scale that you could not dream of or maybe could not afford,” he said, “Sectors like healthcare and financial services — I know that India has a very robust payments market across phones, which can be a model for the world — are now thinking about business differently, and that’s why you have even 100-year-old companies moving to the cloud.”

Rogers added that the quicker pace of adoption notwithstanding, it’s sectors with more regulations like healthcare that are also cautious about cloud adoption, whereas the SMB sector may be in a position to embrace cloud adoption quicker. “For the non-regulated large enterprises, they’re diving deep into cloud adoption as fast as they can because they realise the strategic advantage and business advantage of using cloud versus maintaining data centres that may or may not be core to their business,” he said.

A recent IDC survey estimates that the overall India public cloud services market will hit $17.8 billion by 2027, growing at a CAGR of 23.4% for between 2022 and 2027. AWS is not only betting big on these estimates, but projected the inevitability of cloud-adoption just shy of a decade ago. The company invested $3.7 billion in India between 2016 and 2022, which led to the formation of two AWS zones in India — AWS Asia Pacific (Mumbai) Region in 2016 and more recently, a Hyderabad region in 2022.

The company has announced that its total investments in setting up local cloud infrastructure in India will total to $12.7 billion by 2030, which brings AWS’ total investment in India to $16.4 billion. AWS has also imparted cloud skills to over 4 million in the country since 2017.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Securities gives ‘sell’ on Tata Motors, cites margin, market share concerns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aniket Mhatre, Institutional Research Analyst at HDFC Securities, has made a ‘sell’ call on Tata Motors, underlining concerns over the company’s declining market share across segments in India and the margin sustainability of Jaguar Land Rover (JLR).

“They (Tata Motors) are losing market share, both in passenger vehicles (PVs) and commercial vehicles (CVs) for quite a few quarters now, which is also concerning given the stock up-move that we have seen, which leads us to a cautious view,” he told CNBC-TV18.

Analysts are divided on the stock’s outlook with consensus largely favouring buying Tata Motors. In all, the stock has 28 buy recommendations, 3 hold recommendations, and 4 sell recommendations. The consensus target price currently stands at Rs 708.8.

Broking firm Motilal Oswal Financial Services anticipates that the commercial vehicle sector in India will experience a cyclical recovery, while the passenger vehicle sector is undergoing a structural recovery.

Jaguar Land Rover (JLR) is also expected to witness a cyclical recovery, largely due to a favourable product mix. However, potential supply-side issues might hinder the pace of this recovery.

Although there are no immediate catalysts expected for JLR, the Indian business, which constitutes around 50% of the sum-of-the-parts (SoTP), is set to continue its recovery.

Motilal has a buy on the stock with a target price of Rs 740 based on a September 2025 sum-of-the-parts valuation.

Axis Capital also has a ‘buy’ rating with a target price of Rs 830 based on a sum-of-the-parts valuation. Their confidence stems from several key factors: (1) a robust volume rebound and free cash flow generation within JLR, which is a pivotal catalyst for stock performance; (2) increasing volumes and margin enhancement in the commercial vehicle (CV) segment; and (3) the acceleration of volumes across various powertrains, including compressed natural gas (CNG) and electric vehicle (EV), in the domestic passenger vehicle business.

JLR Q2 Business Report

Retail sales of JLR, including the Chery Jaguar Land Rover China JV, rose 21% year-on-year (YoY) at 106,561 units for the second quarter ended September 30 (Q2FY24). The company had posted retail sales of 88,121 units in the same quarter previous fiscal.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Samvat 2079: The 10 stocks for the new year from HDFC Securities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After a challenging and forgettable Samvat 2078 for global equities, HDFC Securities expects volatility to continue, albeit at a slower space. The brokerage believes that the Indian economy remains in a sweet spot relative to many other economies.

“The domestic investment cycle is exhibiting signs of a revival and, with normal monsoons, the foundation has been laid for the economy to regain its earlier rates of growth,” the firm wrote in its note.

For the upcoming Samvat, the brokerage continues to favour domestic-oriented businesses and opportunities within healthcare, defence, banking, entertainment, and infrastructure.

Here are their 10 stock picks for the year:

One of India’s largest integrated private healthcare service providers has begun a low-capex brownfield expansion whereby it plans to add 500-700 beds via an asset-light model by taking over management and operations of existing hospitals. It will also launch pharmacies in Saudi Arabia. There are plans to increase share of the India business to 40 percent in the next three years. HDFC Securities finds the stock’s current valuation attractive and at a steep discount to Indian peers. It also expects divestment and restructuring of the GCC business to unlock value.

A leading defence PSU, Bharat Dynamics is in the process to set up three new units in Telangana, Maharashtra and Uttar Pradesh to cater to the increased demand from armed forces. Current order book is worth nearly Rs 13,000 crore and the company is also exploring export markets. Consistent order flow, focus on indigenisation and internal efficiencies would fuel earnings growth for the stock, according to the brokerage.

Also Read: Diwali 2022: IDBI Capital suggests these seven stocks to buy for Samvat 2079

BEL’s order backlog as of June 30 this year stood at Rs 55,333 crore which is 3.3x its trailing 12-month revenue. HDFC Securities expects the company to surpass its current year guidance of 15 percent revenue growth and EBITDA margins between 21-23 percent. The company’s financial profile remains strong due to healthy profitability, zero net debt and robust debt coverage metrics. HDFC Securities expects net profit to grow at a compounded rate of 10 percent over the next two years.

The MP Birla Group cement company intends to increase its capacity to nearly 30 million tonnes from the current 20 million tonnes by 2030. The company’s manufacturing units in Uttar Pradesh and Madhya Pradesh have been recognised as mega projects by the government and are eligible for special incentives. HDFC Securities believes that the cost savings measures undertaken by the company will aid revenue and profit growth. It also expects power and fuel costs to be more favourable for the company in the second half of this financial year.

The third-largest pharma company in the domestic formulations market is likely to launch key products in the second half of this financial year. It also expects to launch four complex generics injection products in the next financial year. The brokerage anticipates a 9.5 percent compounded revenue and 19.5 percent compounded net profit growth rate over the next two financial years. The US business is also likely to grow at an 18 percent compounded rate over the next two years.

Also Read: From ITC To Polycab: Here are Axis Securities’ nine stock picks for Samvat 2079

Shares of the largest manufacturer of Nitric Acid in the country have more than doubled over the last 12 months. It also reported its highest ever quarterly revenue and profitability last year. HDFC Securities expects the company’s revenue to compound 14 percent while margins to remain in the 18-20 percent range over the next two years. High regulatory entry barriers, better capacity utilisation, and strong return ratios are some other key positives.

India’s second-largest private bank by asset size has significantly reduced its corporate exposure and grown its loan book with a focus towards retail. Additionally, it is one of the largest financial services conglomerate as the business of its subsidiaries also continues to grow. With the Indian banking industry on the cusp of a credit upcycle, ICICI Bank is one of the best placed, according to HDFC Securities. It also expects subsidiaries to add good value to the overall valuation.

HDFC Securities likes RVNL’s asset-light business model which enables the company to keep its balance sheet stress free and inventory days lower. It expects constant flow of business for the company due to the thrust on improving the infrastructure for rail transportation. The company also has a dividend yield of 5 percent and HDFC Securities finds its valuations attractive given the prospects. However, a potential government Offer for Sale can be a near-term overhang.

Present in the TV broadcasting space for over two decades, the company has expanded its basket of channels to 33 as of date. HDFC Securities expects compounded revenue growth of 11.2 percent over the next two years. With cash worth Rs 1,100 crore on its books, offers scope to invest in the linear or OTT space. Future growth prospects, healthy cash balance and reasonable valuations keep the brokerage positive on the stock.

HDFC Securities expects strong growth for the express logistics industry and sees TCI Express to be well positioned to capitalise on the same. It expects the company to generate free cash flows worth Rs 310 crore until financial year 2025. With improving profitability, the brokerage also expects return ratios like Return on Equity and Return on Capital Employed to remain elevated.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HDFC Securities to open more digital centres to assist digitally native investors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Brokerage house HDFC Securities on Thursday said it will be opening multiple digital centres in the country to boost digital adoption for its customers. This announcement is a part of the company’s commitment to empower its clients with the latest technological solutions to ease their trading journey, while helping them to take charge of their own investments.

Thousands of new investors entered the stock market in the wake of the COVID-19 pandemic. This new generation of investors has a very different investment ethos than their predecessors. A large percentage of these traders are millennials and Gen Zers, who are not just tech-savvy, but are also digital natives, HDFC Securities said in a statement.

These digitally native investors want uninterrupted journeys with an ease of investing available at their fingertips. However, periodically, they also need some handholding in understanding the processes, it added.

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To address this need, HDFC Securities said it is gearing up to operate 13 digital centres across India, acting as propellers for customers to get more out of their digital engagement with HSL platforms. It further said the number of such centres may grow based on the requirement.

“To be able to attract and retain this new generation of investors, we need to focus on digital transformation in a way that eases the customer’s entire trading lifecycle. We have more than 600 relationship managers mapped to our Digital Centres, most of whom belong to the 25-28 age group, who are digital natives themselves and can speak the financial language of the current generation,” Dhiraj Relli, Managing Director and Chief Executive Officer at HDFC Securities said.

Of the digital centres in the pipeline, 10 of them are already operating in Mumbai, Thane, Navi Mumbai, Noida, Nasik, Cochin, Ahmedabad, Kolkata, Jaipur and Indore, while the remaining are gearing up to be operational across various other identified places pan-India.

“The fabric of our digital centres is such that it imbibes the financial aspirations of the modern generation into clear actions on our digital channels, helping investors optimise their portfolios while driving higher activation,” Mufaddal Matcheswala, Chief Growth Officer at HDFC Securities, said.

This journey will have an active digital engagement with customers, goal and risk based portfolio recommendations, customer feedback inclusion and a progressive push of various platform features designed to enrich the trading experience, he added.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cement cos to face margin heat if price not increased by Rs 50/bag: HDFC Securities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”ACC” isinid=”INE012A01025″ bseid=”500410″ nseid=”ACC” sector=”Cement – Major” exchange=”nse”]

In an interview with CNBC-TV18, Rajesh Ravi, Institutional Research Analyst – Cement, HDFC Securities, said that price hikes are needed to maintain margin for the industry. He explained that cement companies need to hike prices by Rs 50 per bag in order to sustain their margins in the June quarter. However, he cautioned that while cement demand is strong, there’s a need to see if the proposed price hike can be absorbed by the consumers.

“Cement industry in the peak of Q4 could not take price hike partly because January demand was bad and late February onwards there had been price recovery. Given that most of the other commodities have already rallied significantly, cement prices haven’t shot up to that extent. And given that now the cost for the industry is staring to be at least Rs 600 high on a per tonne basis, there is nothing Rs 50 price hike which is needed just to sustain the Q4 numbers and if the industry has to go back to what it has delivered in Q1 and Q2 of FY22, another Rs 30 to 40 price hikes are needed. Now, will demand support that? I believe it has to be pushed through. So, I believe demand is there, the commentary so far is not disappointing, I will say, however, will companies be able to take another Rs 30 to 40 price hike? Obviously, there will be a lot of pull and push which will go through,” he said.

Holcim Group, the world’s largest cement manufacturer, may exit India as part of a global strategy in a bid to focus on its core markets. The Switzerland-based conglomerate is currently considering a sale of its 63.19 percent stake in Ambuja, and 4.48 percent stake in ACC Ltd.

Also Read: Holcim Group, world’s largest cement maker, may exit India soon; how this will impact the industry

Ravi believes lower supply from Holcim Group in Indian cement market will be a positive for the industry. He believes that Holcim’s potential exit strategy is aimed at lowering its exposure to the cement space from 60 percent to 35 percent. He also added that it is unlikely that a big premium will be seen for Holcim’s cement assets.

“As far as the Holcim, the stock of Holcim selling off Indian asset, they have published a note recently and what we find is that Holcim has set a target to reduce its cement portfolio from 60 percent in CY20 to almost 30-35 percent odd by CY25. And in this context, they have also sold of assets and few other geographies – Brazil, they have exited, North Ireland they have exited and even Eastern Africa and Madagascar markets they exited. India being a big size, exiting it on one go may accelerate their target to exit Indian market and how will this impact ACC-Ambuja’s performances, it is early days to comment, but broadly what I understand is these M&As can slowdown the renewed capex which ACC and Ambuja has been talking about so far. And that could be a good news for the industry. When two big players were talking about getting aggressive on the capex front, if they slowdown that would reduce the demand supply imbalance and support the industry,” he explained.

Cement maker ACC Ltd recently posted its Q1 earnings. The company reported a 29.6 percent year-on-year (YoY) drop in consolidated net profit at Rs 396.3 crore for the first quarter ended March 31, 2022. The company, which follows a January-December financial year cycle, posted a net profit of Rs 563 crore in the same period a year ago.

Ravi believes ACC’s results were largely in line with the estimates. In fact, the company’s margin exceeded estimates owing to its continued focus on cost.

“ACC results are in-line with what we have been estimating for the industry trend in Q4FY22. Flattish volumes sequentially, flattish realisation, flattish volume year-on-year and there was a slight margin recovery as the overall cost could be contained to healthy cost control and because of fuel prices remaining stable in this quarter on an elevated way,” he said.

Watch the video for the full interview.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bullish on TCS, expect 2.4% growth in dollar terms in Q4FY22: HDFC Securities’ Apurva Prasad

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As IT behemoth Tata Consultancy Services (TCS) gears up to announce its financial performance for the March ended 2022 quarter (Q4FY22), the Street is actively looking for cues to gauge what to expect.

To better understand what to expect from TCS’s Q4 earnings, CNBC-TV18 caught up with Apurva Prasad, Research Analyst-IT Sector, HDFC Securities.

Prasad mentioned that HDFC Securities has an ‘add’ rating on TCS. He reckons that the revenue growth in dollar terms will be seen at 2.4 percent in Q4FY22.

Also Read: TCS Q4FY22 preview: CNBC-TV18 poll expects dollar revenue to grow 2.5%, margins may remain flat

He said, “We are positive on the stock and we have an ‘add’ rating on TCS. We do expect them to deliver about 2.4 percent growth in dollar terms and well above what they have done historically over the past decade in terms of even incremental revenue addition quarter on quarter (QoQ), and in absolute terms, that number is going to be almost 2x of what they have done.”

However, he expects some headwinds for expansion from the cost of capital side.

“We certainly see growth reverting to medium-term baseline levels and there will be a lot lower dispersion of growth in FY23 as compared to FY22.  These two things are a higher possibility and we do see some headwinds for  multiple expansion purely from a cost of capital point of view, but from a medium-term perspective, some of those drivers are fairly intact,” Prasad added.

He believes there can be a positive surprise from a few IT companies over the next few quarters. “There is a case for a positive surprise in some of the stocks over the next few quarters. The probability of that is relatively higher within the mid-tier space, but if I have to call out names that we are relatively more positive on- it is Infosys within tier-I and within mid-tier, Mphasis and Persistent Systems,” Prasad said.

On Infosys, he shared that growth premium is visible for it. Prasad said that he would also watch for the margin guidance. “One has to see the growth premium; what was 100-200 bps growth premium of tier-II or mid-tier IT versus tier-I has almost gone to 10 percentage point. I think on a more sustainable basis, 500-600 bps is something which they can deliver,” said Prasad.

Watch the video for the full interview.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow