TCS has target of Rs 1365: Devang Mehta

TCS has target of Rs 1365, says Devang Mehta from Anand Rathi Financial Services.

Mehta told CNBC-TV18, "A lot of underperformance have been seen in the IT sector in the last few days, but henceforth Infosys and TCS would be prime beneficiaries of what is be happening globally. A lot of pick-up in demand has been witnessed and as the economies improve in the developed nations probably a lot of order flow would result for TCS. After the correction, the stock looks quite attractive and we do have a price target of Rs 1365 for a one year horizon."

He further added, "It seems more of profit taking but what we have witnesses off late is sector churning, that is happening very dynamically in these markets, what runs for one week or say 10 days, suddenly the sector changes and a lot of institutional churning as well as retail churning happens in the stocks and probably that is the why a sector does well for 10-15 days and then goes into the sidelines. So this may be the reason why IT was sort of laggard in last one or two months, but I hope it does well from here on."