Why Aren't IT Stocks Dharmesh Kant's First Choice For Investing? Tata Technologies Shares

Should you consider IT stocks as a defensive investment at current valuations? Dharmesh Kant, Head of Equity Research at Chola Securities, shares his insights on Business Today TV, where he remains cautious about the IT sector as a whole. Despite IT stocks traditionally being seen as a safe haven, Dharmesh Kant observes that the current P/E multiples – ranging from 27 to 35 – are high relative to anticipated growth. With projected PAT growth of only 5-7%, he sees limited upside for core software giants, such as Infosys and TCS, given the lack of profitability growth over the next few years. Instead, Dharmesh Kant highlights opportunities in specific tech-engineering firms, particularly Tata Technologies and KPIT Technologies, which he believes offer stronger growth prospects and reasonable valuations, especially as demand in EV-related services stabilises over the next year. Catch this in-depth analysis as Dharmesh Kant discusses where he sees real value in the tech space for investors.