The brokerage house says that Accenture has increased the growth guidance. This is also very positive for the domestic IT industry.
IT Sector Outlook: IT sector company Accenture has presented excellent quarterly results. Accenture has increased the growth guidance for FY22 to 24-26 per cent. Whereas in the last quarter, the company had kept a growth guidance of 19-22 percent. At present, despite the current volatility, increasing growth guidance and stable margin outlook, it is clear that there is strong demand in the industry. The brokerage house says that this is also very positive for the domestic IT industry. In the coming days, there may be a good rise in the shares of Tier 1 companies. Brokerage houses have expressed confidence in stocks like Infosys, HCL and TCS.
Strong demand environment in IT sector
Brokerage house Motilal Oswal says that it is clear from the results of Accenture that the demand environment in the IT sector remains strong and it is going to be stable for a long time. The brokerage house says that the way Accenture has increased the guidance for FY22, it is also showing growth momentum in the Indian IT industry. While supply-side challenges remain, Accenture’s margin guidance (slight cut of 10bps) indicates that margin performance is likely to be stable in FY2023. The brokerage house has kept a positive view for the IT sector. The brokerage says that we expect sustainable growth with stable margins. Among the top picks in Tier I IT companies, the brokerage has given investment advice expressing confidence in Infosys, HCL Technologies and TCS.
Positive for Indian IT Sector
Goldman Sachs believes Accenture’s orderbook is strong. At the same time, the company has also increased the guidance, which is positive for the Indian IT sector. The brokerage house has retained buy advice on Infosys and TCS. Morgan Stanley has also said that Accenture’s strong growth guidance is positive for the domestic IT industry. The company has increased the guidance even after the current volatility.
healthy pricing environment
The company has talked about a healthy pricing environment in its commentary. ACN saw an improvement in prices in bookings during the quarter and indicated good pricing power for these in-demand skills.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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