Overview
- MOFSL upgraded the sector to Overweight and raised target multiples by about 20%, rolling valuations to FY28 EPS.
- Infosys, Mphasis and Zensar were lifted to Buy and Wipro to Neutral, with Infosys assigned a Rs 2,150 target based on 26x FY28E EPS.
- The firm expects revenue momentum to improve in the second half of FY27 and take fuller shape in FY28 as enterprise AI deployments scale.
- Preferred plays include Hexaware and Coforge among mid‑caps and HCLTech and Tech Mahindra among large caps, citing an AI‑services upcycle.
- Risks flagged include margin pressure from a higher mix of fixed‑price and outcome‑based work and uncertainty on the exact timing of demand normalization.