Buy Sonata Software Ltd For Target Rs.230.00 - Religare Sec

Investment Rationale

* Sonata Software Ltd is an IT services and Solutions Company and it is involved in the provision of IT services and solutions to its customers, and distribution of software products in India. The company operates in two major business units: international IT services (IITS) and domestic products and services (DPS).

* It

18/02/2017 3:51:38 PM | Posted in Broking Firm Views - Short Term Report read full news
Indian IT industry faces twin challenges of Trump, automation

MUMBAI  - Automation and the new U.S. administration were the big unknowns at the Indian tech sector's annual shindig this week, with machines threatening to take away thousands of jobs and concerns over possible visa rule changes in the key American market.

But senior executives from the $150 billion industry, which rose to prominence at the turn of the cent

Global software analytics market to reach $18.3 bn: Gartner

Global revenue in the business intelligence (BI) and analytics software market is forecast to reach $18.3 billion in 2017 -- an increase of 7.3 per cent from 2016.

By the end of 2020, the market is forecast to grow to $22.8 billion, the market research firm Gartner said on Friday. 

The modern BI and analytics market is expected to decelerate, however, from 63.6 per cent

Reduce eClerx Services Ltd For Target Rs.1,315.00 - Reliance Sec

Disastrous Performance on All Counts

eClerx Services (eClerx) has delivered a disastrous performance in 3QFY17 with below par numbers on all key parameters. Revenue declined by 3.5% QoQ in USD terms (-2.6% QoQ in CC terms) to $47.2mn (4.4% below our estimate). EBIT margin nosedived by 620bps QoQ (643bps below our estimate), which resulted in 11.5% QoQ

17/02/2017 3:29:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Infosys positioned `Leader` by Gartner EMEA 2016

Infosys, a global leader in consulting, technology, outsourcing and next-generation services has said that Gartner Inc. has positioned Infosys as a ‘Leader’ in its EMEA and North America 2016 Magic Quadrant reports for SAP® Application Services.

Gartner’s ‘Magic Quadrant for SAP® Application Services, EMEA’ report evaluates 19 service providers ac

TCS too mulls buyback of shares soon

Global software major Tata Consultancy Services Ltd (TCS) proposes buyback of equity shares of Re 1 face value, said the IT major on Thursday,

"The Board of Directors will consider a proposal for buyback of equity shares of the company at its meeting to be held on February 20, 2017," said the flagship company of the Tata Group in a regulatory filing to the BSE.
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TCS rises over 2% on share buyback plan

Shares of Tata Consultancy Services (TCS) climbed over 2 per cent on the Bombay Stock Exchange after IT bellwether said its board will meet on February 20, 2017 to consider a proposal for buyback of equity shares of the company.

Following the announcement, shares of country’s largest software exporter gained as much as 2.52 per cent to hit an intra-day high of Rs 2477.50 apiece

Cyient partners ASE S.p.A for joint market development

Cyient Inc., a subsidiary of Cyient Limited, a global provider of engineering, manufacturing, data analytics, network and operations solutions has said that it has partnered ASE S.p.A., a privately-owned Italian company, and a leading supplier of electrical power generation and distribution systems to the international aerospace and defence industry, for joint market development of products in

Palred Technologie`s LatestOne.com launches new private label `DaZon`

Palred Technologies Ltd has said that LatestOne.com has launched ‘DaZon Wrist Watches’ for Men & Women which is in line with LatestOne.com’s strategy of continuously innovating and introducing promising categories to meet rapidly changing customer needs and demands.

After achieving India’s no. 1 position as e-tailer of tech & mobile accessories, LatestO

Digital to drive Indian tech industry's next phase: Nasscom

Riding on the hard work of over 3.86 million employees and growth of five per cent over the financial year 2016, digital capabilities will drive the Indian technology industry's next phase of development, industry's representative body Nasscom said on Wednesday.

The new emerging technologies will open up multiple areas of work for the industry and will have a significant

Buy Persistent Systems Ltd For Target Rs.745.00 - Reliance Sec

STOCK IN FOCUS

* Persistent Systems (Persistent) has reported healthy growth in revenue in 3QFY17, with IP revenue (+6.9% qoq) and revenue from top client IBM (+8.7%) clocking excellent growth following a decline in 2QFY17

* We continue to believe Persistent is on the right track in so far as direction of its business is concerned. It is well

15/02/2017 11:09:27 AM | Posted in Broking Firm Views - Short Term Report read full news
Infosys seeks to reassure investors over governance

MUMBAI  - IT services group Infosys on Tuesday reassured investors and analysts it was not being distracted by a dispute with its founders over how it was being managed.

India's second-biggest IT services company behind Tata Consultancy Services has been locked in a public war of words with founders and former executives, who, led by N.R. Narayana Murthy, hav

India IT Services - Downgrade cycle bottoming; valuations cheap - RCML

The RCML IT universe saw Q3FY17 revenue growth of 1.3% QoQ (RCMLe 1.1%) and EBIT margins of 21.3% (RCMLe: 21.2%). While Q3 was expected to be slow, our IT universe largely met estimates or outperformed slightly. We think earnings expectations for the sector have moderated and Q3 results indicate a bottoming out of the earnings downgrade cycle. Valuations are cheap and greater comfort on estimat

14/02/2017 4:11:41 PM | Posted in Broking Firm Views - Sector Report read full news
Accumulate Firstsource Solutions Ltd For Target Rs.50.00 – Emkay

Inline operating performance; SKY deal lends near term growth visibility

* FSL reported sequentially flat INR revenues, inline with our estimate. The constant currency revenue growth for Dec’16 quarter was 2.1% QoQ/13.9% YoY, continuing on strong double digit YoY growth trajectory for fourth quarter in row

* EBITDA margins at 12.1%, dec

14/02/2017 11:48:04 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Technologies Ltd For Target Rs.468.00 - Reliance Sec

Technical Research

* The stock is being consolidating in a range of 400-450 levels from last 24 weeks being ready for a breakout in the coming few weeks with the overall sector in momentum.

* Stochastic & RSI are also coinciding with our view, as both the indicators are in bullish mode.

* However in case of major decline multi m

14/02/2017 10:57:30 AM | Posted in Broking Firm Views - Short Term Report read full news
Government IT spending to grow 9.5% in 2017: Gartner

Led by growth in business process outsourcing, the Indian government is set to spend $7.8 billion on IT in 2017 - an increase of 9.5 per cent over 2016, market research firm Gartner said on Monday.

This forecast includes spending on internal services, software, IT services, data centre systems, devices and telecom services. 

"Government spending on IT services will

Infosys management seeks to ease tensions with founders

By Sankalp Phartiyal and Euan Rocha

MUMBAI - Management at Infosys Ltd attempted on Monday to allay concerns that the software services firm was facing a worsening dispute with its founders over how the company was being run, saying that the board was engaging with the founders, including N.R. Narayana Murthy.

India's second-biggest IT services comp

Hold Sonata Software Ltd For Target Rs.190.00 - Reliance Sec

Sonata Software (Sonata) delivered an unimpressive performance in 3QFY17, with IITS business revenue declining 2.9% QoQ to $30.3mn (~4% below our estimate). However, IITS revenue adjusting for Systems Integration (hardware) revenue in 2QFY17 rose 1% QoQ in USD terms and 3.5% QoQ in CC terms. DPS revenue rose by 31% QoQ and 20.9% YoY to Rs4.15bn. While consolidated EBIT margin topped our estimat

13/02/2017 11:51:21 AM | Posted in Broking Firm Views - Long Term Report read full news
IT spends by domestic banks to grow 10% in 2017: Gartner

Global analyst firm Gartner has said that IT spends by domestic banks and securities firms will grow nearly 10 per cent to USD 8.9 billion in 2017. Commenting on the issue, a Gartner Official told the media, "IT spending by banking and securities firms in India will reach USD 8.9 billion in 2017, an increase of 9.7 percent from 2016."

“This includes total enterprise IT

Vishal Sikka turned around Infosys' fortunes: Investor fund

As the corporate battle between the Infosys' board and its founders raged over governance issues, leading institutional investor Oppenheimer Developing Markets Fund has defended Chief Executive Officer (CEO) Vishal Sikka for turning its fortunes since he joined in August 2014.

"In our opinion, Sikka has achieved much in his tenure as the first non-founder CEO. After years of

IT spending by banks in India to grow: Gartner

 IT spending by banking and security firms in India will reach $8.9 billion in 2017 -- an increase of 9.7 per cent from 2016, market research firm Gartner said on Friday.

Gartner predicted that IT services will grow the fastest at 13.8 per cent in 2017 as firms in the banking and securities industry invest more in business processes, specifically in business process outsourcing.&

Infosys Chairman must quit for lapses: Former CFO

The Infosys Chairman must quit taking responsibility for the lapses in corporate governance and an interim chairman should address the concerns of shareholders, the software company's former chief financial officer (CFO) said on Friday.

"I think Chairman (R. Seshasayee) should step down taking responsibility for all the lapses in the past. The Board should have an interim cha

Infosys board keen to avoid Tata-style row - source

MUMBAI - The Infosys Ltd board does not want a war of words with the Indian software services company's former leadership to descend into the kind of damaging row seen at Tata, an Infosys boardroom source said on Friday.

India's second biggest IT services company, based in the southern tech hub of Bengaluru, has been in an escalating public dispute with its fo

Three mn drones to be shipped in 2017: Gartner

 With global market revenue expected to increase 34 per cent to reach more than $6 billion in 2017 and set to grow more than $11.2 billion by 2020, almost three million personal and commercial drones will be shipped in 2017, market research firm Gartner said on Thursday.

Personal drones will continue to increase in popularity as an affordable extension of consumers' smartphon

IT Services - Frenetic legislative activity ignore slight positives in December'16 results - Emkay

* Recent flurry in H1B visa reforms coupled with the leaked draft of the Presidential Executive order has prompted increased investor apprehensions in terms of adverse ramifications that the sector could possibly suffer.

* The broader contours of the bills being tabled include (1) raising minimum wages for H1B visa staff, (2) alterations in the methodology of administering visas, and

9/02/2017 3:24:57 PM | Posted in Broking Firm Views - Sector Report read full news