Avoid NIIT: Dipan Mehta

Ignore NIIT, says Dipan Mehta, Member BSE & NSE.

Mehta told CNBC-TV18, "NIIT can be ignored. The company has consistently underperformed its peer group and by and large its performance has been quite disappointing and typically one division does well other two do badly and then that kind of churning keeps on taking place whereby its never able to fire on all cylinders even the acquisition, which they did in the US is being a problem area for the company."

He further added, "NIIT Technologies has been showing promise over the past three-four quarters; they have consistently beaten street expectations and they are getting into a space or into a zone where one could expect the results to be more predictable as well as have better earnings visibility. So that is positive for the stock and if that trend continues for a quarter or two then investors maybe compelled to pay a slightly higher PE multiple. NIIT Technologies has always been quoted at a discount to midcap IT and maybe that situation could change. But little bit more time needs to be given before one can say that there is a change in the operations and now we are going to see more predictable results."