Dharmesh Kant, Head of Research at Chola Securities, signals a 5‑10% upside for TCS, HCLTech and Tech Mahindra, citing a steady stream of AI‑related deal wins that are counter‑balancing a dip in traditional technology spend.
He pointed out that the recent influx of AI contracts is keeping valuation multiples buoyant, even as broader IT spend remains muted. The narrative is more about momentum than a fundamental shift in the sector’s earnings trajectory.
Kant labels the move a tactical trade rather than a long‑term structural call, suggesting that the upside is likely to materialise over the next few weeks rather than sustain over a fiscal year.
Beyond the IT space, the analyst offered brief remarks on Urban Company, hospitals and banking stocks, noting that each sector has its own set of catalysts that could drive short‑term gains.
With the current backdrop, investors may look to capture the immediate rally, but the consensus remains that the upside is limited in scope and duration.