IT Stock to Buy Now: JM Financial Recommends This Pick With 35% Upside Potential

IT Stock to Buy Now: Why Black Box Ltd Is Poised for a 35% Rally, According to JM Financial

If you’re scanning the market for an IT stock to buy now, analysts at JM Financial have made a compelling case for Black Box Ltd. With the digital infrastructure boom underway and global IT spending forecasted to hit $5.27 trillion in 2024, Black Box is strongly positioned to ride the wave. JM Financial recently issued a ‘Buy’ rating on the stock, projecting a 35% upside from its current levels.

Why Black Box Ltd Is the Top IT Stock to Buy Now

India’s IT-enabled services (ITeS) sector is experiencing rapid growth, and Black Box Ltd is emerging as a key player in this transformation. The company’s deep focus on networking, connectivity, and data center solutions makes it an ideal candidate for investors looking for an IT stock to buy now.

With a market cap of ₹8,859.51 crore, Black Box shares were recently trading at ₹523.00—up nearly 5% from the previous close. JM Financial has placed a target price of ₹670, signaling a potential upside of 35% from current levels.

Strong Fundamentals Back This IT Stock to Buy Now

JM Financial believes that Black Box will benefit significantly from India’s fast-expanding data center ecosystem. The firm has already secured over $340 million in contracts from a leading global social media client across 12 quarters.

Since its acquisition by AGC Networks (Essar Group), Black Box has seen robust financial improvements. From FY22 to FY25, the company expanded its EBITDA margins by 420 basis points and achieved a 40% CAGR in earnings per share (EPS). This transformation makes it a solid IT stock to buy now, especially as it enters a focused growth phase driven by a verticalized go-to-market strategy.

A Strong Order Book Supports Its Growth Story

One of the main reasons Black Box is considered an IT stock to buy now is its healthy pipeline and order book. The company has:

• A current order book worth $504 million
• A future sales pipeline of $2.5 billion
• A target to reach $2 billion in revenue by FY29

Of this $2 billion revenue target, $600 million is expected to come from strategic acquisitions. The company expects growth momentum to build from Q2FY26 onward, with JM Financial projecting a 14.2% revenue CAGR and 31.2% EPS CAGR from FY25 to FY28.

Financial Performance: Why Black Box is a Solid IT Stock to Buy Now

Black Box recently posted robust financials for Q4 FY25:

• Revenue rose 4% YoY from ₹1,480 crore to ₹1,545 crore.
• Net profit surged by 46% from ₹41 crore to ₹60 crore.

For the full FY25, the company reported:

• Revenue of ₹5,967 crore
• EBITDA of ₹531 crore at an 8.9% margin
• FY26 revenue guidance of ₹6,750–₹7,000 crore
• Projected EBITDA margin of 9.0%–9.2%

These numbers underline Black Box’s operational efficiency and growth potential, reinforcing its appeal as an IT stock to buy now.

Global Clients and Strategic Expansion Fuel Its Potential

Another factor boosting investor confidence is Black Box’s top-tier client base. The company counts Meta, Disney, Intel, and Bank of America among its clients. It focuses on growing its top 300 global accounts by increasing wallet share and exiting low-margin clients.

The data center business, contributing 17.5% of current revenue, is expected to grow to 25% by FY29, implying a CAGR of 42% in that segment. This vertical alone could significantly drive revenue and profit growth in the coming years.

IT Sector Outlook: A Boon for This IT Stock to Buy Now

India’s IT sector continues to boom in 2025, with job creation expected to grow by 20% and demand for AI, cybersecurity, and cloud roles projected to jump by 75%. Black Box is ideally placed to capture this demand, given its expertise and global delivery capabilities.

Moreover, with a dedicated focus on managed services and digital infrastructure, Black Box is set to benefit from rising IT spending trends, especially in the US and APAC regions.

Risks and Considerations

As with any equity investment, there are risks to consider. Though Black Box’s fundamentals are solid, factors such as global macroeconomic conditions, forex fluctuations, or delays in infrastructure projects could impact future performance.

Additionally, while the order book and sales pipeline are impressive, actual execution and timely delivery will be key to realizing its ambitious revenue and profit targets.

Should You Consider This IT Stock to Buy Now?

For investors looking for a fundamentally strong IT stock to buy now, Black Box Ltd offers a compelling mix of:

• Robust financials
• Global clientele
• High-growth verticals
• A 35% upside potential backed by a reputed brokerage

Its focus on digital transformation and expansion into high-margin, scalable services makes it a smart pick in the current market environment.

Final Verdict on Black Box Ltd as the IT Stock to Buy Now

Black Box Ltd is not just another IT services provider—it’s a strategically transforming company with a strong order book, growing global footprint, and an innovative approach to service delivery. With rising global IT spending and the company’s focused execution strategy, it checks all the boxes for a smart IT stock to buy now.

Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult a certified financial advisor before making any investment decisions.

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