TCS vs HCL Tech vs Wipro vs Infosys: Which stock to buy after Q4 results 2024?
Q4 results 2024: TCS’ Q4 result has displayed the most resilient performance across all fronts, say experts.
IT stocks to buy on Monday: After the declaration of Q4 results 2024 by the Indian IT majors like Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies, it might become tricky for an investor to fish out the value pick in the IT segment. To clear the confusion for investors stuck among the shares of TCS, Infosys, Wipro, and HCL Tech, stock market experts say that TCS Q4 results have outperformed Wipro, Infosys, and HCL Tech results. However, they maintained that HCL Tech adopting AI at a faster rate can be a game changer in the long term.
Which IT company gave better Q4 results 2024?
Speaking on Q4 results 2024 of the four Indian IT majors, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360 said, “TCS reported a consolidated net profit of ₹12,434 crore for the fourth quarter, marking a 9% increase from ₹11,392 crore recorded a year earlier. Revenue from operations experienced a slight year-on-year (YoY) uptick, rising by 3.5% to reach ₹61,237 crore.”
On Wipro Q4 results 2024, the Pace 360 expert said, “Wipro recorded a consolidated net profit of ₹2,835 crore, marking an 8% decline compared to the same period last year when it stood at ₹3,074 crore for the quarter ended on March 31, 2024. Revenue decreased by 4% YoY to ₹22,208 crore, down from ₹23,190 crore in the same period last year.”
On Infosys Q4 results, Amit Goel said that Infosys reported a net profit of ₹7,975 crore in the March quarter, while total revenues came in at ₹37,923 crore.
Asked about the HCL Tech results Q4 for FY24, Amit Goel said, “HCL Technologies reported a net profit of ₹3,986 crore for Q4FY24, marking a slight increase from ₹3,983 crore reported in the corresponding period last year. It posted a 7% rise in revenue, reaching ₹28,499 crore in Q4FY24 compared to ₹26,606 crore in the same period of the previous year. Despite difficult times, it led the industry in FY24 with a strong 5.4% YoY growth in USD revenue. Going forward, the adoption of AI will only drive an increase in worldwide enterprise IT spending. They are well-positioned to capitalize on AI-led propositions, a global delivery model, and an ideal mix of technology services and products.”
Q4 results: TCS vs HCL Tech vs Infosys vs Wipro
Comparing Q4 results of HCL Tech, TCS, Wipro, and Infosys, DK Mudaraddi, Research Analyst at Stoxbox said, “Amid a challenging business environment, between TCS, Infosys, and Wipro, TCS’ result has displayed the most resilient performance across all fronts. Financials for Infosys and Wipro were weak as the companies were not able to ensure timely ramp-up of deals and fell prey to indecisive and subdued discretionary spending. TCS however was able to continue banking on its megadeals for healthy billing and was also able to ensure that its new deal pipeline continued to grow to multi-year highs underscoring their efficiency and proactive innovation in terms of services they provide to clients. Attrition however was the highest for Wipro followed by Infosys and then TCS. Despite the decline in LTM attrition year-end headcounts reflect a significant reduction for Infosys, Wipro, and TCS for the first time in over a decade. HCL Tech being an exception added employees during the period and the financial year. This decline reflects a cooling down of the job market after the pandemic-induced digital boom led to aggressive hiring by companies and startups. This comes at a time when IT companies are looking to improve the utilization rate of existing employees amidst lowering attrition, to grow margins.”
“HCL Tech’s margins suffered more than others due to a slowdown in their high-margin software products business. After looking at the results of these IT giants one can notice a clear focus on efficiency and increasing utilization to subsequently realize higher margins in a challenging demand environment where discretionary spending has been on a decline. This environment has a few green shoots for example in the manufacturing and healthcare sectors however the largest sectors of BFSI, Retail, and Energy remain weak and recovery can only be expected from Q2FY25 onwards as finalized client budgets will come into execution,” the StoxBox expert added.
Which IT stock to buy on Monday?
On what technical chart reflects about TCS, Infosys, Wipro, and HCL Tech shares, Sugandha Sachdeva, Founder of SS Wealth Street said, “Among the four IT majors- Infosys, TCS, HCL Tech, and Wipro, the price patterns for Infosys and Wipro appear more favorable from a medium to long-term perspective. Our top pick would be Infosys, which has shown strong performance. After forming a base at ₹1185 in April last year, Infosys rallied to ₹1733 in Feb’24, marking a significant 46% gain. The recent retracement has led to a short-term base of around ₹1350, with the stock now consolidating and likely to move higher towards ₹1600 in the near term. A break above ₹1650 could open up further gains towards ₹1900 and beyond in the long term.”
“Wipro is our second pick, having also seen substantial gains of around 55% from its lows in Apr’23 to recent highs of Rs. 545.90 in Feb’24. The stock has re-tested its previous resistance-turned-support at Rs. 445 and is poised to resume its upward trajectory. Wipro has the potential to reach Rs. 615 and beyond in the long term, offering a potential return of around 34% in the medium term,” the SS WealthStreet expert added.
Speaking on the TCS share price technical chart, Sugandha Sachdeva said, ‘In the order of preference, TCS is placed as our third pick, followed by HCL Tech as the fourth pick. TCS has breached its previous high of Rs. 3625 and tested new highs around ₹4254 last month. The recent profit booking could attract buying interest yet again, potentially driving the stock towards ₹4750 level in case it manages to sustain above ₹4120 levels.”
Sugandha went on to add that HCL Tech’s trend appears positive, although some corrective declines may occur. As long as the stock holds above ₹1250 on a closing basis, a buy-on-dips strategy seems viable.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.