Accenture’s stock dip signals caution for IT investors: Sandip Agarwal

“Whereas the present quarter was, I’d say, on the high finish of the steerage and we didn’t see any underperformance there, however given the worldwide uncertainties, the CEO, Julie Candy, has already talked about that there are two varieties of impression which they’re seeing within the demand atmosphere,” says Sandip Agarwal, Sowilo Funding Managers.

Allow us to discuss concerning the income sign. The truth that their Q2 income grew 5%. Inform me, what does it suggest for world IT companies demand in 2025?
Sandip Agarwal: Present Accenture’s numbers don’t imply something for the demand for the present 12 months CY25 primarily as a result of there may be additionally uncertainty which they’ve talked about.

Whereas the present quarter was, I’d say, on the high finish of the steerage and we didn’t see any underperformance there, however given the worldwide uncertainties, the CEO, Julie Candy, has already talked about that there are two varieties of impression which they’re seeing within the demand atmosphere.

One is due to the tariffs and the entire chaos which is there and there are actually talks of recession additionally.
On the opposite aspect, if you happen to see the division has requested a number of the high 10 consultants, amongst which Accenture can be certainly one of them, to chop down the consultancies and the bills. So, there’s a double-pronged impression and the cascading impact of that may also be there on Indian IT corporations.

Stock response, Accenture stock fell 6% regardless of an EPS beat. Does this trace at broader spending considerations and IT sector fatigue?
Sandip Agarwal: No, it’s precisely the outlook as a result of market all the time goes with outlook and never with what the historic. So, historic numbers had been good, however market will see what’s the outlook and what’s the future and the long run seems to be slightly unsure within the close to time period, so we may also have related reactions within the stock. Indian IT shares luckily have corrected fairly a bit they usually have underperformed considerably in final three-four months, to that extent we now have some cushion.Secondly, we’re not straight uncovered to consultancy like Accenture is, however nonetheless I imagine that whereas our shares might not see absolute worth correction in a big manner, however I see an enormous time correction nonetheless in loads of shares and a number of the shares that are excessive progress corporations the place the multiples are 3 times PEG ratio, 3.5 PEG ratio, these significantly you will note far more impression for my part.