Technology stocks have caught the Street’s fancy over the past one year with the rupee ceding ground, even as heavyweights TCS and Infosys have bagged large deals. While the Nifty IT index has gone up by 5% (as of November 11), the stocks of TCS and Infosys have spiked by 41% and 43%. HCL Technologies, however, has been playing catch up, with the stock gaining just 17%, owing to relatively subdued operational performance over the past two quarters. While HCL’s revenue grew by 14% (yoy) in June 2018 and 2% in March 2018, TCS revenue was up 16% and 8%, while Infosys’ revenue grew 12% and 5.63% over the same period.
However, the trend changed in Q2 of FY19 as the company met the Street’s expectation with revenue growing 19.5% y