Only TCS and HCL Tech have managed to outperform the benchmark Sensex this year with returns of 26% and 37%. (Reuters)
With investors a tad tired of cyclicals, the top four IT counters hit lifetime highs during intra-day trades on Tuesday, reports Devangi Gandhi in Mumbai. Only Tata Consultancy Services (TCS)
and HCL Technologies
have managed to outperform the benchmark Sensex this year with returns of 26% and 37%, respectively, but the appointment of Vishal Sikka as the CEO of Infosys
has rekindled optimism in the companys stock. Moreover, on the back of its outstanding performance, TCS has not only held on to its status as the countrys most valued listed firm but also commands a market cap of over R5 lakh crore.
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Other than Infy, all the stocks are trading at a premium to their historical (trailing 12 months) valuations with TCS changing hands at a premium as high as 30% to its average P/E value since listing. However, all four stocks are trading at a 10% to 50% discount to their peak multiples and analysts are convinced there's room for upside since the US recovery seems to be on track. Moreover, there's renewed weakness in rupee even as cross-currency movements, due to the strength of the dollar, may impact Q2FY15 revenues.