Motilal Oswal Picked 3 Large Cap IT Stocks, Recommends Buy For Upto 26% Gains
In its recent report on the IT sector, Motilal Oswal has identified three large cap IT stocks that it recommends for investment, with the potential for up to 26% returns. These stocks are Tata Consultancy Services Ltd. (TCS), Infosys Ltd. (INFO), and HCL Technologies Ltd. (HCLT).
The IT Sector: Overview and Current Trends
Before delving into the specifics of these three stocks, it's important to understand the broader context of the IT sector. In recent years, this sector has emerged as one of the most important drivers of economic growth in India. It includes a wide range of companies involved in software development, IT services, and related industries.
Despite the impact of the COVID-19 pandemic on the global economy, the IT sector has remained relatively resilient. In fact, the pandemic has accelerated the trend towards digital transformation, with businesses and individuals relying more heavily on technology than ever before. This has led to increased demand for IT services and software development.
Tata Consultancy Services Ltd. (TCS)
Tata Consultancy Services Ltd. (TCS) is the largest IT services company in India, with a market capitalization of over $180 billion. Motilal Oswal has assigned a "Buy" rating to the stock, with a target price of Rs 3,710/share. The stock last traded at Rs 3,205.90/share, up 2.13% from the previous close. Considering the given target price, if you buy the stock at the current market price, it can fetch up to 16% gains.
Over the past five years, TCS has delivered impressive returns, with a gain of 125.04%. However, the stock has experienced some volatility in the past year, with a negative return of 14.28%. Nonetheless, Motilal Oswal remains bullish on the stock, citing its strong fundamentals and long-term growth potential.
Infosys Ltd. (INFO)
Infosys Ltd. (INFO) is another major player in the Indian IT sector, with a market capitalization of over $100 billion. Motilal Oswal has assigned a "Buy" rating to the stock, with a target price of Rs 1750/share. The share last traded at Rs 1,427.95/share, up 3.21% from the previous close. According to the given target price and last traded price of the stock, it can fetch up to 23% return.
Infosys has also delivered strong returns over the past five years, with a gain of 152.33%. However, the stock has experienced some turbulence in the past year, with a decline of 25.11%. Nonetheless, Motilal Oswal believes that the stock is undervalued and has significant upside potential.
HCL Technologies Ltd. (HCLT)
HCL Technologies Ltd. (HCLT) is a mid-sized IT services company with a market capitalization of around $50 billion. Motilal Oswal has assigned a "Buy" rating to the stock, with a target price of Rs 1360/share, claiming a potential upside of up to 26%. The stock last traded at Rs 1,085.25/share, up 1.66% from the previous close.
Over the past five years, HCLT has delivered strong returns, with a gain of 124.09%. However, the stock has experienced some volatility in the past year, with a decline of 6.75%. Nonetheless, Motilal Oswal believes that the stock has strong fundamentals and is well-positioned to benefit from the growth in the IT sector.
Investing in these three large cap IT stocks recommended by Motilal Oswal can potentially provide high returns for investors. However, it is important to note that there are risks involved in any investment, and it is important to do your own research and consult with a financial advisor before making any investment decisions.
Conclusion
In conclusion, Motilal Oswal has identified three large-cap IT stocks that it recommends as "Buy" for investors seeking high returns. These stocks include Tata Consultancy Services Ltd. (TCS), Infosys Ltd. (INFO), and HCL Technologies Ltd. (HCLT). The report highlights that the IT sector has seen a significant correction in valuations due to concerns on the macro environment. However, Motilal Oswal remains selective in the space and views any correction in the preferred names as an opportunity to accumulate further.
TCS, Infosys, and HCLT are all leading companies in the IT space and have delivered strong returns over the past several years. While these stocks have experienced some volatility in the past year, Motilal Oswal believes that they are well-positioned to continue their growth trajectory and deliver returns for investors.
Investors should consider their own risk tolerance and investment goals before making any decisions on purchasing these stocks. However, for those seeking exposure to the IT sector and potential high returns, these three large-cap stocks may be worth considering.
Overall, Motilal Oswal's report provides valuable insights for investors seeking to navigate the current market environment and make informed investment decisions. By analyzing key trends and identifying specific stocks with potential for growth, Motilal Oswal has provided a roadmap for investors looking to capitalize on opportunities in the IT sector.
FAQS
1. Is investing in large cap IT stocks recommended by Motilal Oswal a safe bet?
While Motilal Oswal has recommended these three stocks for potential gains, it is important to note that there are risks involved in any investment. It is important to do your own research and consult with a financial advisor before making any investment decisions.
2. What are the target prices for the recommended IT stocks?
Motilal Oswal has assigned a "Buy" rating with a target price of Rs 3,710/share for TCS, a target price of Rs 1,750/share for INFO, and a target price of Rs 1,360/share for HCLT.
3. What are the 52-week highs and lows for these stocks?
TCS's 52-week high is Rs 3,835.60/share and 52-week low is Rs 2,926.10/share. INFO's 52-week high is Rs 1,919/share and 52-week low is Rs 1,355/share. HCLT's 52-week high is Rs 1,203/share and 52-week low is Rs 877.35/share.
4. What are the past returns for these stocks?
TCS gave 14.28% negative return in 1 year, 75.56% positive return in 3 years and 125.04% in 5 years, respectively. INFO declined by 25.11% in the past 1 year, but gained 122.6% and 152.33% in the past 3 and 5 years, respectively. HCLT has fallen 6.75% in the past 1 year, but gave 148.68% positive return in 3 years and 124.09% in 5 years, respectively.
5. Should I invest in these IT stocks?
Investing in these stocks can potentially provide high returns, but it is important to do your own research and consult with a financial advisor before making any investment decisions.