Jefferies has downgraded Indian information technology (IT) companies Infosys, HCLTech, and Mphasis to "hold"; LTI MindTree, Tata Consultancy Services (TCS) and Hexaware to "underperform", citing artificial intelligence (AI)-related concerns. Coforge, Sagility and IKS, however, still remain its top picks.
AI is changing how IT companies hire, with skills like learning fast and solving problems now more important than degrees.
Shares of information technology (IT) companies were in demand on Friday, with the National Stock Exchange's (NSE's) Nifty IT index rallying 3.3 per cent on . This came after Infosys reported steady sequential growth, driven by health care boost and large deal rampup in a seasonally weak quarter (Q3FY26).
In November, six primary market issuances accounted for more than 13,000 crore of net equity investments by MFs.
'It's better to stay away from large IT stocks until there is clarity on tariffs.'
'I expect IT stocks to trade lower for some time. They are unlikely to make money for investors.'
Mid-tier information-technology (IT) companies last financial year reported better growth numbers than their larger counterparts, highlighting their ability to navigate the uncertain macroeconomic environment. Most of these companies - such as Persistent Systems, Coforge, KPIT, and Mphasis - focus on niche businesses and industries that allow them to go deeper in terms of client mining and expanding wallet share from existing customers.
Blackstone on Monday said funds managed by the private equity firm will acquire a majority stake in IT firm Mphasis Ltd, triggering an open offer for acquisition of up to 26 per cent stake for about Rs 8,262 crore. A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments (Office of the Chief Investment Officer of The Regents, University of California) and others will co-invest along with Blackstone, a statement said. Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 to Rs 1,497 per share (12-16 per cent premium to 12-month average price and 3-6 per cent discount to 6-month average price) and the purchase consideration will vary between Rs 15,200 crore to Rs 21,000 crore (approximately$2-2.8 billion), the statement said.
The shares of MphasiS went up by a little over two per cent, even as media reports suggested parent company Hewlett-Packard (HP) might look at changing its ownership structure in the firm.
MphasiS, a software services exporter and an EDS subsidiary in India, has announced that chief executive officer Jeya Kumar has resigned to pursue external career opportunities.
Global IT services giant Electronic Data Systems Corporation has completed the acquisition of MphasiS BFL Ltd, the leading software applications and BPO company.
Murthy has served as Mphasis' CFO since July 2009 and will continue in his role till June 3, 2014, the company said in a statement.
MphasiS serves clients in multiple industries, including financial services, transportation, technology and health care.
Baring Private Equity Partners on Monday denied any plans to restructure MphasiS BFL or its management team.
Hewlett Packard currently owns 60.5 per cent of BSE and NSE-listed Mphasis.
Private equity firm Blackstone will buy out HP Enterprise's stake in Mphasis for up to Rs 7,071 crore, marking the largest IT deal for the US-based firm in India
Come January, employees of IT services company MphasiS could be in for an off-schedule New Year surprise -- a 20-40 per cent salary cut across the board.
Even as both Hewlett-Packard and EDS are yet to make a financial decision on whether to continue operating MphasiS as a fully-owned subsidiary in India, Deepak Patel, a key executive of MphasiS, has resigned from the company with immediate effect. Patel, who played the key role in the successful merger of MphasiS with EDS, was elevated as the MD and COO of the company in September 2006. Previously, he was VP (best shore strategic investments and businessfn development), EDS.
The controlling shareholders of smaller and mid-sized companies are reducing their stakes at levels seldom seen since the 2008 global financial crisis. Over 20 per cent of companies listed on BSE MidCap and BSE SmallCap have seen a decline in promoter holdings for five consecutive quarters, reveals data from DSP Mutual Fund, shared with Business Standard. In the latest June quarter, the figure stood at 22.6 per cent.
IT and BPO services provider MphasiS on Wednesday said it is set to acquire AIG Systems Solutions (AIGSS), part of the troubled insurance giant American International Group Inc, for an undisclosed amount.
Bangalore-based information technology company Mphasis BFL Ltd will acquire Onida Infotech Services, a division of MIRC Electronics Ltd, for Rs 3 crore in an all cash deal.
IT services provider Mphasis on Wednesday said it will open a centre in Sri Lanka by the middle of next year, for which it will hire 2,000 people. MphasiS Sri Lanka, a fully-owned subsidiary of the Mphasis Group, would be operational by the middle of 2010 and will start work with 500 people.
IT & BPO company Mphasis on Wednesday said it will set up its third Indian BPO centre in Mangalore which will become operational in the next fiscal and will look at acquisitions in the IT services space in the United Kingdom.
Management commentary on demand environment, and forward guidance will be in focus when Indian IT services players declare their September quarter results for financial year 2024-25 (Q2FY25). The industry is exepected to have continued on the path of recovery in Q2, similar to the preceding quarter, rather than sprint towards growth. The top four firms likely grew between 0 per cent and 4 per cent year-on-year (Y-o-Y), according to consensus estimates.
IT company Mphasis BFL Ltd has acquired US-based Eldorado Computing Inc, a healthcare insurance business process outsourcing outfit, for $16.5 million in an all cash deal.
IT firm MphasiS on Monday said it will acquire US-based Digital Risk for $175 million (about Rs 960 crore), a move that will help it attain leadership position in the US mortgage services market.
Mphasis BFL Group on Monday said it would acquire London-based consulting company Princeton Consultings in an all cash deal for £7.73 million.
MphasiS, the IT and business process outsourcing service provider, has seen some changes in recent years. First, the Bangalore-based company promoted by Jerry Rao was acquired by EDS. Then, HP acquired EDS last year.
Global firm Accenture's fourth quarter results prove that the worst is behind for the Indian information technology (IT) sector, said analysts on Friday (September 27). While the pace and the broadness of recovery is debatable, they said Accenture's results and revenue growth guidance for the next financial year (FY25) reduce downside risks for Indian IT companies.
Mphasis BFL Group has entered into a definitive agreement to acquire Kshema Technologies for approximately $21 million through a combination of stock and cash.
Bangalore-based IT outsourcing services provider MphasiS, an EDS company, is reducing hiring plans by almost 50 per cent.
HP's 60.5 per cent stake is valued at $1 billion.
MphasiS BFL Ltd, a mid-sized Indian software service exporter with a fast-growing call centre subsidiary, plans to start its first overseas call centre in Mexico in January, a senior company official said on Friday.
Mphasis BFL Ltd on Wednesday announced the appointment of Alok Misra, as chief financial officer and Abnash Singh, as chief information officer of the company.
BPO solutions provider Mphasis BFL said on Wednesday it will merge the entire business and undertaking of EDS Electronic Data Systems (India) with itself.
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