Coforge’s shares and Persistent Systems’ shares are currently trading at ₹7,673.45 and ₹5,791.30 respectively as of 2:48 pm on the NSE.
Tech Mahindra, which has been overlooked in recent times, presents a turnaround opportunity. These stocks offer a mix of stability and growth potential.
Infosys’ shares and TCS’s shares are currently trading at ₹1,848.95 and ₹3,878 respectively as of 2:50 pm on the NSE.
On the other hand, engineering services should be avoided for now due to headwinds across multiple segments, including automotive and high-tech industries. While traditional incumbents continue to dominate, emerging challengers like Coforge and Persistent Systems are displaying superior growth rates.
Also Read | Cognizant accuses Infosys of trade secret theft in US lawsuit: Reports
Coforge, in particular, stands out as a high-growth pick. Kotak expects over 20% organic growth in 2025-26, far surpassing market expectations. Infosys is another strong contender, given its higher discretionary exposure, which is expected to benefit from a recovery in discretionary spending in 2025-26.
Growth in the IT sector is expected to improve from 4-4.5% in 2024-25 to 6.5-7% in 2025-26. However, there will be variations in growth rates across companies, depending on factors like the availability of large deals and the relative health of revenue-generating verticals.
Also Read | TCS to roll out 4-8% salary hikes in March; ties increments to return-to-office policy
The valuation landscape among global IT firms has shifted. Accenture’s valuations have now converged with those of Infosys and TCS. Cognizant remains in a turnaround phase and cannot be directly compared due to its lower growth rates.
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