How will India’s IT biggies perform?
Rediff: Moneycontrol.com did an interview with Karvy stock broking analyst R. Ravi. Ravi believes that all IT companies will have to pay higher taxes and the effective tax rate provisioning for the industry, which has been hovering between 10-12 per cent, will definitely go to around 16-18 per cent.
He adds that for Infosys (Nasdaq: INFY), he is expecting revenues to grow by 8.8 per cent and its profit at reported level should be around 7.1 per cent. In case of Wipro (NYSE: WIT), he expects their IT and ITES revenues to grow healthy, close to 7 per cent and for TCS, he is expecting the topline to grow by around 8.5 per cent.
Ravi added, “If you look at tier one, I am quite positive on all the stocks whether it is Infosys, TCS or Wipro“.
On HCL and Satyam (NYSE: SAY) Ravi has an out-perform rating and on Patni (NYSE: PTI), he has a buy rating. But he also thinks the tax shots will keep the investors at bay at this point of time.