Birlasoft stock has been in a sell-off after New Year 2022. Year-to-date, the small IT company’s share price has fallen from a 52-week high of Rs 585.85 per share to a new 52-week low of Rs 308.25 per share on the NSE. As a result, IT stock is nearly 48% from its 52-week high in 2022 and is down about 45% this year. The stock has been hammered after disappointing quarterly results from IT giants TCS and HCL Tech in recent sessions.

Shares of Birlasoft, which opened higher today but soon sparked profit bookings, started lower on Friday morning to hit a fresh 52-week low of Rs 307.45, down nearly 3% from Thursday’s close of Rs 317.55 per share levels.

On why Birlasoft’s share price fell ahead of the first-quarter results, Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “Following the disappointing first-quarter results of TCS and HCL Tech, the market is expecting demand pressure from smaller Indian IT companies, including Alright Birlasoft. The market expects tepid quarterly numbers from Birlasoft and assumes there may be no big deals in the April 2022-June 2022 quarter.”

Anuj Gupta, Vice President, Equity Research at IIFL, expecting Birlasoft share price to remain weak, said: “Birlasoft share price is showing a negative crossover on the chart pattern. Each level is priced between Rs 280 and Rs 342. It is recommended that those in their portfolios. Those who own this stock keep a tight stop loss at Rs 280. New investors are advised to avoid positions ahead of Q1 results.”

The company has yet to announce its earnings release date, but its board has set a record date of July 15 for dividend payments and share buybacks. As a result, IT stock hit a new 52-week low today as it trades in the form of dividends and buybacks. However, the company’s next annual general meeting is scheduled for August 3, 2022. As such, expect Birlasoft’s first-quarter results date to have some announcements on or before this AGM.