Bengaluru, India – Infosys Ltd., India's second-largest IT exporter, is projected to have the highest consensus target upside among Nifty IT firms over the next 12 months, according to recent Bloomberg data compiled by Business Today. Analysts forecast a 21% upside potential for Infosys, making it the only index stock with a double-digit growth projection.
Analyst Projections for Major IT Stocks
The 12-month consensus target for Infosys is set at Rs 1,332.83 per share, based on 51 analyst estimates. Following closely, Tata Consultancy Services (TCS) has a target of Rs 2,408.75, suggesting a 9.5% potential upside from 48 analyst recommendations.
- Wipro: Target Rs 194.28
- Mphasis: Target Rs 2,603.82
- HCL Technologies: Target Rs 1,283.66
- Coforge: Target Rs 1,684.62
These firms are estimated to offer an 8-9% upside over the coming year. LTM Ltd. has a target of Rs 4,356.30, indicating a 5.6% potential upside from 44 estimates. Tech Mahindra (TechM) with a target of Rs 1,551.02 and Persistent Systems at Rs 5,206 show relatively flat upside potential. In contrast, Oracle Financial Services Ltd. is the sole Nifty IT constituent with a consensus target indicating an 8.3% potential downside.
Q1 Earnings and Market Recovery
The projections arrive amidst the ongoing Q1 earnings season for Indian IT companies. Tata Consultancy Services, LTM, and HCL Technologies have already announced their June quarter results. Wipro is slated to declare its Q1 results on July 16, followed by Infosys and Mphasis on July 23, and Coforge on July 27.
The Nifty IT index has experienced a smart recovery recently, gaining 3.55% over the past five trading sessions. Oracle Financial Services, LTM, and Persistent Systems each saw a 6.6% jump, while TCS and TechM advanced 4-5%. Wipro, Infosys, Coforge, HCL Tech, and Mphasis also rose by up to 3% during the same period.
"IT stocks are bouncing back from low levels helped by low valuations and better-than-expected Q1 results from TCS and HCL Tech. This appears to be a short-term tactical trade," stated Vijayakumar, Chief Investment Strategist at Geojit Investments.
Indian IT firms entered the Q1 earnings season with subdued expectations due to persistent macroeconomic uncertainty, geopolitical tensions, and AI-led pricing pressures, which have slowed client decision-making and deal conversions. While management commentary has hinted at a potentially stronger FY27 compared to FY26, a broad demand recovery remains elusive in the immediate term.