Nifty IT index has seen a growth of 63.95% in last six months Consolidated net profit of Tata Consultancy Services increased 4.9% in the quarter
IT companies have reported strong profits in the second quarter of the current financial year. This includes sector giants TCS and Infosys. Due to this, brokerage houses are advising investors to buy in the IT sector. In the last six months, the Nifty IT index has shown a growth of 63.95%. This is the highest gain in any index of NSE in this period.
TCS quarterly results
Consolidated net profit of Tata Consultancy Services (TCS) increased 4.9% to Rs 8,433 crore in the September quarter. This increase is on an annual basis. It does not include the provision of Rs 1218 crore made for a legal claim. If it is also included, the net profit of the company will be Rs 7475 crore.
The company’s revenue also grew by 3% to Rs 40,135 crore in the September 2020 quarter from Rs 38,977 crore in the same quarter last year. Apart from this, the company has also decided to give an interim dividend of Rs 12 per share to its shareholders. On Friday, the company’s stock closed at 2686.45 on the BSE.
Infosys profits by 20%
Infosys’ profit in the second quarter increased by 20.50% to Rs 4,845 crore from Rs 4,019 crore last year. In dollar terms, the company’s revenue grew 3.2% year-on-year to $ 3,312 million. This is 6.1% higher than the previous quarter. Operating profit also increased 20.7% to $ 840 million. The company has also announced a dividend of Rs 12 per share to its shareholders. The stock of the company has closed at 1122.00 on the BSE on Friday.
After March, IT stocks return till 23 October
HCL Tech –
Share price on March 19: Rs 375.50
Share price on October 23: Rs 852.25
Returns to investors: 127%
Share price on March 19: Rs 511.10
Share price on October 23: Rs 1122.00
Returns to investors: 119%
Share price on March 19: Rs 159.60
Share price on October 23: Rs 342.40
Returns to investors: 115%
Share price on March 13: Rs 1,504.40
Share price on October 23: Rs 2686.45
Returns to investors: 78.69%
Advice to investors on IT sector
Brokerage houses have advised investors to buy into the sector due to the excellent results of IT shares in the second quarter. Nirmal Bang Securities has given a target of Rs 1057 on HCL Tech, which is currently trading at 852 level. That is, investors can get 24% return in 2-3 years.
The brokerage house has given a target of 2,809 for the veteran TCS. At the same time, MK Global has given a target of Rs 1360 for Infosys. The company’s stock closed at 1122 on Friday. While Motilal Oswal has given a target of Rs 1355 on Infosys. A target of Rs 382 has been given for Wipro by Nirmal Bang.