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MC Podcast | Employee pyramid structure in IT firms a good indicator if margins can be sustained

In this podcast, Onkar explains the business models of leading IT services companies, and lists the things that investors should keep an eye out for when investing in IT stocks.

November 28, 2022 / 03:48 PM IST

“Most investors look at just the operating parameters of the business, such as margins. But how those margins can be sustained, or improved upon, depends on the HR process known as pyramid of employees,” says Raunak Onkar, Head of Research, Parag Parikh Financial Advisory Services, in conversation with Moneycontrol’s Santosh Nair.

He also talks about why IT shares are underperforming even though companies have a positive outlook on the deal pipeline.

Other points of discussion include:

• The high level of attrition in the industry

• Why Wipro shares fell out of favour with investors

• Why investors should not get swayed by quarterly numbers
Moneycontrol News
first published: Nov 9, 2022 04:01 pm