IT Services Outlook - BFSI To Drag FY24 Growth, But Structural Demand Intact: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Though the current macro environment remains weak, the structural demand outlook for IT sector remains intact. We continue to believe that the macro challenges will ebb by H1 FY24 and the situation will start improving in the later part of the year. This should be followed by healthy recovery in FY25E with improved visibility for clients and catch up in tech spends. Normalisation in hiring, higher fresher additions, lower attrition, improvement in utilisation and lesser reliance on sub-contractor expenses should drive margin expansion over the medium term. Valuations have significantly corrected from their peaks as we believe that the concerns on macro environment have already been factored into the valuations. We remain selective in the space and view any correction in the preferred names as an opportunity to accumulate further..Click on the attachment to read the full report:.Bank Versus IT - Their Roles In Alpha Creation: Motilal Oswal's Analysis.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IT Services Outlook - BFSI To Drag FY24 Growth, But Structural Demand Intact: Motilal Oswal

Easing of supply pressure to aid FY24 earnings

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