Persistent Systems, L&T Technology Services, Cyient, KPIT Technologies, and Tata Elxsi will benefit from this trend, driven by large deal wins, continued investment from customers for digital engineering services for their end products, and inorganic growth through M&As.
“IREDA looks like a good bet for people who want to participate. From a sector perspective, from a group perspective, that looks quite compelling. But I am baffled by Tata Technology. I am really trying to figure out what exactly this company is trying to do and what is the purpose of doing the IPO.”
Of the top 10 listed software companies, mutual funds increased their holding in eight of them, while FIIs have done it in seven of them, shareholding data for the September quarter analysed by ETMarkets showed.
Despite a few companies like Happiest Minds and Mphasis missing estimates due to wage hikes and sustained pressure on the BFSI segment, analysts see the midcap segment continuing to end the fiscal on a strong note.