Birlasoft Witnesses Strong Buying Interest Amid Q3 Expectations

Birlasoft Witnesses Strong Buying Interest Amid Q3 Expectations

VoM News Desk | January 24, 2024 | 12:17 PM IST | Breaking News | Follow on Google News

Birlasoft Witnesses Strong Buying Interest Amid Q3 Expectations/PTI

Birlasoft Witnesses Strong Buying Interest Amid Q3 Expectations

Birlasoft shares experienced robust buying interest in early morning trading on the Indian stock market. The multibagger IT stock opened on a positive note, reaching an intraday high of ₹814.90 on NSE shortly after the market’s opening. Although it fell short of breaching its lifetime high of ₹817.90, stock market experts suggest the outlook remains positive.

Anticipation for Q3 Results and Order Intake

Birlasoft is set to declare its Q3 results, and market expectations are high, particularly regarding a robust order intake during the October to December 2023 quarter. Analysts advise Birlasoft shareholders to hold the stock with a stop loss at ₹780 per share. A potential breakthrough of the current hurdle at ₹820, especially on a closing basis, could propel the stock to levels around ₹870 in the short term.

Insights into Q3 Expectations

Dhruv Mudaraddi, Research Analyst at StoxBox, anticipates low single-digit QoQ growth in constant currency terms for Birlasoft in Q3FY24. Positive conditions in the manufacturing and insurance sectors are expected to drive growth, countered by challenges in the life sciences domain. Key growth drivers include Cloud, Data analytics, and ERP services. Despite the expected revenue uptick, a slight decline in EBIT margins is foreseen, influenced by factors such as a two-month wage hike.

Share Price Target and Strategy for Investors

Sumeet Bagadia, Executive Director at Choice Broking, suggests that Birlasoft shares exhibit strength on the charts and could turn highly bullish upon surpassing the ₹820 hurdle on a closing basis. Shareholders are advised to maintain a stop loss at ₹780. In the event of a breakout above ₹820, the stock may target levels between ₹850 and ₹870 in the short term. Bagadia recommends a buy-on-dips strategy for fresh investors, maintaining a stop loss at ₹780 for a short-term target of ₹850 to ₹870 per share.

VoM News Desk

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