BOB Capital's Girish Pai on IT Stocks: Is it Time to Buy? Potential Entry Points Ahead

• Girish Pai of BOB Capital Markets notes Tier-one IT stocks are near long-term average valuations.
• He suggests a potential 10-15% decline in stock prices could create a good entry point if earnings pressure continues.
• Indian IT services have seen three years of slow growth, with FY26 expected to be the third, but FY27 might see a 150-200 basis point revenue growth pickup.
• Concerns exist about the sustainability of recovery into FY28-FY29 due to uncertainty from agent-based AI.
• Pai advises selective investing, favoring BPO-focused companies like Firstsource and eClerxas, while cautioning against Persistent Systems and Coforge due to valuation and acquisition risks.