Prabhudas Lilladher favours mid-cap IT over large-caps: Initiates coverage on Cyient, Persistent Systems and Mphasis

In a recent report, domestic brokerage firm Prabhudas Lilladher highlighted the current challenges large-cap IT stocks face due to a tough demand environment. These pressures have also now extended to mid-cap IT stocks, causing notable volatility in their operating performance.

Despite these near-term difficulties, the brokerage remains optimistic about mid-cap IT stocks for the remainder of FY25, noting that these stocks are currently trading at a premium of arounf 5 percent compared to their large-cap counterparts.