Birlasoft: Antique said the deal pipeline remains strong but future signings are uncertain due to the timing of client decisions. The IT firm is looking to execute and maximise signings in the upcoming quarter, it said.
The Birlasoft stock has been in an uptrend for the past few months. It reached a low above 400 levels in September 2023 and since then the stock has been in a rising trend. It did retest 670 levels earlier in January 2024 but then quickly recouped losses to continue its journey of hitting fresh record highs.
Birlasoft, where mutual funds owned 20.31 per cent stake at the end of September quarter, is up 147.75 per cent this calendar. The stock closed at Rs 740.80 on Friday against December 30, 2022 closing value of Rs 299.
Birlasoft is likely to underperform its peers, in the near to medium term, as the new management takes its time to navigate through these multiple issues.
Persistent Systems is 1.7 times Birlasoft's revenue, 2 times its profit and 3.1 times its market capitalisation. HDFC Institutional Equities is positive about Birlasoft’s growth prospects.