Newsletter March, 2024

Our January 2024 newsletter covered the fundamental changes that led to a significant rally in the small-caps and why we believe this rally is here to stay despite premium valuations relative to historical averages. This month, we go more micro and deep dive into IT industry which has witnessed a similar divergence. Among the IT services industry, Tier–2 companies (LTIMindtree, Coforge, Persistent, Mphasis) have outperformed the larger, Tier–1 companies (TCS, Infosys, HCL Tech, Wipro, and TechM) in returns across the last 3 years.