Envision Capital's Nilesh Shah: Indian IT Stocks Require Valuation Adjustment Amid Slower Growth

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Indian IT Stocks Face Valuation Reset Amid Slowing Growth: Nilesh Shah

With the third quarter earnings season drawing to a close, there will be a beeline of companies reporting their quarterly results in the upcoming week. A combination of Nifty 50 companies, F&O stocks, and new listings as well, will be part of the list for the week. Here's a look at some of the major earnings that you should have your eyes on:

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CNBC TV18•21-02-2026, 15:06

Indian IT Stocks Face Valuation Reset Amid Slowing Growth: Nilesh Shah

•Envision Capital's Nilesh Shah suggests Indian IT stocks need a valuation reset due to moderate earnings growth.
•Shah believes large IT firms, growing at 5-8% in rupee terms, should trade around 15 times trailing earnings, down from current 19-20 times.
•This valuation would place IT stocks at a 25% discount to Nifty, which is expected to grow 12-15%.
•Shah notes that while technology spending will continue, growth rates for large IT companies have steadily fallen over decades.
•He suggests potential growth lifters include large acquisitions, investments in data centers, or innovative computing services.

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