Tactical IT floor trade
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Infosys | Held | 13.80 | 31.71% | 4.18 L Cr | Tactical IT floor trade | |
| TCS | Not held | n/a | n/a | n/a | TCS trades at 15.2x with 2.8% yield and 52% ROE but 4.6% PAT growth in Q1; Infosys is cheaper (14.2x), yields 4.4%, and has larger net-new deal wins ($3.6 bn TCV, 61% net new) - Buoyant is buying the discount, not the franchise premium. | Screener · Tijori |
| HCLTech | Not held | n/a | n/a | n/a | HCL (19.2x P/E, 4.2% yield) grew INR revenue 14% with 16.9% margin; Infosys offers 420 bps higher margin (21.1%) at a ~25% lower multiple, though HCL's products/ER&D mix has the better growth. | Screener · Tijori |
| Wipro | Not held | n/a | n/a | n/a | Wipro is cheaper (12.9x, 6.4% yield) but has 8% 5-yr sales CAGR, flat Q1 PAT (+0.6%), 16% margin falling from 17.2%, and a 'cautious' Q2 guide - Infosys has structurally higher margin (21%) and ROE (32% vs 15.5%). | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
We do not own TCS, HCL Tech or Wipro because if we are going to hold a small tactical position in a sector with a capped upside we want the cheapest large franchise with the cleanest AI narrative — Infosys. Dixon (2.6–3% margins, PLI 1.0 expired, ROCE falling) is volume without value; Syrma and Amber are priced higher than Kaynes on trailing earnings with lower margins. PB Fintech is priced at 90x+ for an insurance-distribution model; Eternal is a quick-commerce cash-burn story we hold only in the AIFs. Persistent and Sagility lack Indegene's domain moat.
All sectors we avoid or underweight →Kaynes (2.4%, Core) is India's highest-margin scaled EMS company (15–16% EBITDA vs 3% at Dixon) with the country's first private OSAT (chip packaging) and HDI-PCB plants ramping in FY27 — the stock is half its 2025 high on working-capital worries we think are transitional. Paytm (2.2%, Turnaround) turned profitable in FY26, is the only listed merchant-payments platform (device subscriptions, soundboxes, loan distribution) and should compound revenue 20–25% with operating leverage now that the payments-bank overhang is closed. Indegene (1.2%, Core) grows 15–20% with 15%+ ROE serving 20 of the top-20 global pharma companies at 30x FY27E. Infosys (0.7%, Core) is the tactical floor trade: 16.6x FY27E, a 3%+ dividend-plus-buyback yield, the best balance sheet in the sector.
| Software Testing Services Segment Market Share | 4 % | as of Mar 18 |