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Indian IT Stocks Projected to Hit Record Highs in 6 to 12 Months
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CNBC TV18•16-10-2026, 10:32
Indian IT Stocks Projected to Hit Record Highs in 6 to 12 Months
- •Indian IT stocks are predicted to reach new all-time highs within the next six to 12 months as AI-led deflation pressures ease and earnings improve.
- •Sandip Agarwal of Sowilo Investment Managers expresses strong bullish sentiment, expecting strong sector-wide relief after the recent quarter.
- •The sector is anticipated to deliver a 45 to 70 percent cumulative EPS CAGR over the next three years, ensuring solid minimum returns for investors.
- •Agarwal favors traditional IT services over engineering research and development firms due to valuation concerns and sustainable growth factors.
- •Midcap and smallcap IT services firms present better risk-reward opportunities, supported by substantial cash reserves and accelerating enterprise AI adoption.
Key Questions Answered
Sandip Agarwal expects Indian IT companies to deliver a cumulative earnings per share (EPS) compound annual growth rate of 45% to 70% over the next three years.
Agarwal prefers IT services because he remains cautious about the high valuations of ER&D firms and the uncertain sustainability of their recent market share gains following the Russia-Ukraine conflict.
Enterprise AI adoption is expected to ease deflationary pressures, improve revenue growth and profit margins, and drive substantial relief and earnings upgrades across the IT sector.
