Canara Robeco Mutual Fund, one of India's leading mutual fund houses, has raised its stake in the country's two largest IT companies, Infosys and Tata Consultancy Services (TCS). Despite the tepid quarterly numbers reported by these IT giants, the mutual fund thought otherwise and decided to invest more in these companies. The move indicates that Canara Robeco Mutual Fund has confidence in the long-term growth prospects of these firms.
Canara Robeco Mutual Fund Shareholding in Infosys and TCS
According to mutual fund data, Canara Robeco Mutual Fund raised its stake in Infosys from 0.45 per cent to 0.46 per cent in March 2023. By the end of March 2023, the mutual fund held 1,92,45,560 Infosys shares, which amounted to 0.46 per cent of the company's total paid-up capital. Similarly, the mutual fund's shareholding in TCS surged from 0.08 per cent to 0.09 per cent during the same period. By the end of March 2023, Canara Robeco Mutual Fund held 33,20,387 TCS shares, which amounted to 0.09 per cent of the company's total paid-up capital.
TCS vs Infosys: Which IT stock to buy today?
Ravi Singhal, CEO at GCL Broking, favors Infosys over TCS. Singhal believes that Infosys is more attractive than TCS because of its guidance after weak quarterly results. He suggests that those with a long-term perspective of one to two years can buy Infosys in the range of ₹1200 to ₹1250 apiece, with a stop loss at ₹1100 apiece levels. Singhal expects Infosys share price to go up to ₹1860 per share levels in the next two years. On the other hand, Singhal recommends buying TCS shares at around ₹2900 apiece.
Investment Strategy in IT Stocks
Avinash Gorakshkar, Head of Research at Profitmart Securities, suggests that both TCS and Infosys shares are expected to remain in base building mode for the next one to two years. Therefore, Gorakshkar recommends that investors adopt a buy, hold, and forget strategy for Infosys shares.
Infosys Q4FY23 Results
Infosys reported weak Q4FY23 numbers with its Q4 PAT coming in at ₹6,128 crore, down by nearly 16% QoQ. The company's revenue also dipped by 2.2% QoQ to ₹37,441 crore. However, in constant currency, the company's revenue growth came in at 3.2% QoQ and 8.8% YoY. The operating margin stood at 21% in Q4.
TCS Q4FY23 Results
TCS reported a net income of ₹113.9 billion ($1.4 billion) for the fourth quarter ending in March, which is a 15% increase from the previous year. However, this fell short of analysts' estimates of ₹115.3 billions on average. Despite this, TCS's sales increased by 17% to 591.6 billion rupees.
Disclaimer
The views and recommendations made above are those of individual analysts or broking companies and not of US. Investors are advised to check with certified experts before making any investment decisions.
