1 day ago
Brokerage Names Five Indian IT Stocks for AI-Led Growth
Anand Rathi, a brokerage, chose five Indian IT companies it believes could benefit from the next stage of artificial intelligence spending.
The companies are Tech Mahindra, LTM, Infosys, Persistent Systems and Mphasis.
The brokerage says companies are moving from simply building AI infrastructure to using AI in everyday business.
Indian IT firms may benefit because they help businesses install, connect, manage and improve technology systems.
Tech Mahindra is expected to continue its turnaround and aim for faster sales growth.
LTM and Persistent Systems are supported by large deals and expansion plans.
Mphasis has a large pipeline of AI-related work, while Infosys is expected to improve after a muted FY27.
The supplied article mentions target prices but does not include the actual numbers.
Anand Rathi identified Tech Mahindra, LTM, Infosys, Persistent Systems and Mphasis as its top five IT stock picks.
The brokerage expects AI spending to shift from capacity building toward enterprise deployment, integration, governance and legacy modernisation.
Tech Mahindra’s turnaround is expected to move from margin recovery toward above-peer revenue growth by FY27.
LTM and Persistent Systems are supported by large-deal momentum, sector demand and expansion opportunities, while Mphasis has an AI-heavy deal pipeline.
The article headline refers to target prices, but the supplied text does not provide numerical targets; it also attributes 30% Q1 large-deal TCV growth to LTM while discussing Infosys.
- Who
- Anand Rathi and the five companies it selected: Tech Mahindra, LTM, Infosys, Persistent Systems and Mphasis.
- What
- Anand Rathi identified five Indian IT stocks as its preferred picks and explained their potential growth drivers.
- Where
- The companies operate in the Indian IT sector; the article also mentions European expansion for LTM and Persistent Systems.
- When
- The outlook discusses FY26-FY28 and describes FY27 and FY28 expectations.
- Why
- Anand Rathi believes AI spending is shifting toward enterprise deployment, integration, governance and legacy modernisation, areas where Indian IT services firms may benefit.
Key facts
- Brokerage
- Anand Rathi
- Top picks
- Tech Mahindra, LTM, Infosys, Persistent Systems and Mphasis
- Tech Mahindra outlook
- The company is entering FY27 as the final year of its three-year turnaround, with the focus shifting toward revenue growth.
- Infosys AI monetisation
- AI monetisation accounts for 8.2% of revenue and rose 22% CQGR from Q3 to Q1, according to the article.
- Persistent Systems sector mix
- BFSI contributes 34% of revenue and healthcare contributes 25%.
- Mphasis pipeline
- The pipeline is up 28% year over year, with AI-led deals accounting for about 70% of it.
- Target prices
- Numerical target prices are not included in the supplied article text.
Quotes
Anand Rathi
Brokerage providing analysis and stock recommendations for Indian IT companies
“Our core thesis is that the AI cycle is pivoting from 'building capacity' to 'proving payback' — a transition that is inherently services-heavy and plays squarely to Indian IT's strengths in deployment, integration, governance and legacy modernisation”
businesstoday.in
Sources
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