Good largecaps available than GSS America

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

CNBC-TV18's Executive Editor, Udayan Mukherjee - GSS America is cheap but it's unexciting. It's a small company; next year if they are lucky, they will do close to USD 100 million in revenues and also exports to the US. It's a kind of company where two clients decide to claw back and 40% hit on one's earnings. So I don't think one want to be in that kind of space at all and one can see what's been going on in the market; midcap IT generally now trades between 5-8 PE for most of the companies barring one-two exceptions for FY09 earnings.
 
So in that kind of a scenario, even if GSS America does the expected Rs 70 earnings next year which is a big leaf from the Rs 40 odd that they will do this year. Even so it's trading at about 6 odd PE multiple at Rs 400 which was the issue price, didn't get any great subscription just about manage to scrape through onetime.
 
So it's not expensive but I don't know whether people will fall over each other to buy midcap IT stock in this current environment that too fairly a small one given that the whole peer set and some probably better peers, larger peers that are available pretty much in the same kind of PE band.
 
So no argument on pricing the IPO but the market mood is quite different right now and one won't find too much interest for this kind of stories just at this point.