UBS cuts Indian IT EPS estimates 17

UBS has lowered its earning per share EPS estimates for large cap Indian IT companies by 6-10 percent and 10-17 percent for smaller vendors for FY13-16 as increasing competition,slowing deal flows and falling valuations would see a structural de-rating in the sector.

UBS downgraded Infosys to 8216;neutral8217; from 8216;buy8217; and MphasiS,Patni Computer Systems and Tech Mahindra from 8216;neutral8217; to 8216;sell8217;.

The Swiss bank said in a report it expects lower margin venders like Cognizant and HCL Technologies to compete more aggressively,which is likely to amplify pricing and margin pressure on larger vendors eventually,making it difficult for the latter to gain market share.

At 1.00 p.m CNX IT index was trading lower by 0.75 percent.

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