Moving away from the initial noise, much of optimism around the company is due to cheap valuations when compared with listed peers such as KPIT, L&T Tech and Tata Elxsi.
Two decades after TCS, the Tata Group returns to Dalal Street with its 30th company ready to be listed. The investor interest is soaring much above the price band which is fixed at ₹475 to ₹500 per equity share. But aside from the ‘Tata Premium’ what does Tata Tech offer? What is the business model? Is Tata Motors being the promoter and biggest client a risk or a boost? Why should an investor pick it over group competitor Tata Elxsi or KPIT? Tune in as Tata Tech CEO, Warren K. Harris breaks it down to ET’s Anupriya Nair and Ashutosh Shyam in the latest episode of The Morning Brief podcast.
Gurmeet Chadha, CIO & Managing Partner of Complete Circle Consultants, discusses the current state of the IT industry and shares his preferences for investments. He believes that while deals are happening, revenue translation is slow due to longer-term contracts. Chadha is selective in his investments and favors KPIT and Persistent in the mid-cap IT space, and HCL Tech among largecaps.
Chakri Lokapriya believes that while midcap IT stocks continue to generate faster order flow compared to largecaps, he would not invest in them due to their recent run-up. However, companies like KPIT, Mphasis, Coforge, and Birlasoft are performing well with no apparent slowdown in their business momentum. In the cement industry, Dalmia Bharat and JK Cement are considered compelling due to expected capex surge and infra push.
Sachin Tikekar, Co-founder and Joint MD, KPIT said, “We are experiencing greater traction with our strategic clients as we move further in creating trusted partnerships with our clients to help them accelerate their transformation. The attrition has been consistently falling over the last 3 quarters.”