A runner-up in 2012, Bank of America Merrill Lynch’s Mitali Ghosh climbs to No. 3. The researcher is cited for what one admirer terms “her detailed and insightful reports.” Ghosh maintains an optimistic outlook on the group, framed by her beliefs that demand is starting to see a cyclical uptick, which she expects to accelerate over the next couple of quarters, and that the sharp depreciation of the rupee versus the dollar is supportive of the industry’s margins. “Investments in sales and intellectual property and a focus on productivity over the last few years, coupled with the more recent rupee weakness, are also helping to increase the competitiveness of Indian vendors against their Western counterparts,” she declares. “This should translate into faster market-share gains for the offshore model” that Indian information technology companies employ. Accordingly, she is monitoring U.S. immigration reform legislation that contains potential changes to rules governing eligibility and costs for its H-1B visa program, which allows companies to temporarily employ foreign workers in the U.S. in specialty occupations. Ghosh forecasts “performance deviation across companies as strategy, revenue mix and execution diverge,” so is counseling investors that stock picking remains key. Her large-cap favorite is Mumbai-based global IT consulting services provider Tata Consultancy Services, thanks to its strong competitive position and growth prospects. Tech Mahindra is Ghosh’s preferred midcap name because the analyst envisions upside scope for a rerating of the Pune-based computer software developer and marketer. — Carolyn Koo |
The 2013 All-India Research Team: Information Technology, Third: Mitali Ghosh