Overview
- MOFSL upgraded the sector to Overweight, raised Infosys, Mphasis and Zensar to Buy, and moved Wipro to Neutral.
- Targets were rolled to FY28 EPS and valuation multiples lifted by about 20%, alongside higher growth estimates to reflect an anticipated recovery.
- MOFSL argues the AI cycle is moving beyond infrastructure toward software and services, citing the 2016–18 cloud playbook and improving signals from EPAM and Globant.
- Stock specifics include a new Infosys target of Rs 2,150 with FY27/FY28 CC growth of 5.5%/8.6%, a Mphasis target of Rs 4,100, and preferred AI plays Hexaware, Coforge, HCLTech and Tech Mahindra.
- The firm flags margin risk from rising fixed-price and outcome-based work, while tailwinds include a weaker rupee near 89 per dollar and a low index weight versus a steady 15% profit share.