Pricey or promising? IT midcap leaves analysts split into 2 conflicting camps

NEW DELHI: The most consistent tier-II IT firm has driven a wedge in the analyst community over the stock’s prospects, as a strong rally since the April 2020 low has brought its valuations at par with industry leader TCS.

The stock has corrected about 20 per cent from its January highs, but analysts say its valuations are still among the ‘most expensive’ in the sector. Some are alarmed and have set price targets below the prevailing stock price, while others say they are ready to pay the premium for consistency.