Will the Indian tech boys put up a good show this season?

Q: Do you expect companies like 3i to show an increase in margins this time?

Nanda: I think that will be mixed. For example, in the midcap space, we cover NIIT Technologies. They have already guided for a decline in margins because of a one-time integration issue.

They had acquired Room Solutions so that will be an issue there. For the other companies, by and large, margins should expand in the largecap and midcap space. I think the exception, of course, would be Satyam and maybe HCL Technologies.

Q: One of the stocks in the midcap technology space that you like is NIIT Technologies. Tell us why?

Nanda: We like the valuations; it has got significant amount of cash and it is attractively valued, once the cash per share is excluded. I think once they are able to integrate Room Solutions with them, we should be able to see QoQ earnings growth coming from Q3 onwards and that should drive up the share price.           

Q: What is your outlook on Infosys?

Inamdar: We are very positive on the company and we have a buy rating on this stock.

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