NIIT Technologies a top pick: Dipan Mehta

NIIT Technologies is a top pick, says Dipan Mehta, Member, BSE and NSE.

Mehta told CNBC-TV18, "Our top pick is NIIT Technologies although it is down today because of promoters selling off their shares and that is certainly a bit disturbing, so we need to review that. But I think Zensar has delivered good set of numbers and I am very positive on the company as also KPIT Cummins as well as MindTree."
He further added, "The thing about midcap IT is that you are better off buying them in a basket because although they have taken several steps to de-risk their business model, there are always shocks and surprises. If you were to take a basket of 4-5 stocks and keep on changing them according to what the performance has been and what the management commentary is, then my sense is that over a 2-3 year period it will deliver returns higher than even a TCS or a Wipro or Infosys, so that has to be the strategy to play these midcap IT stocks."
"Look for companies which have got very low client concentration the likes of NIIT and to an extent Polaris, Zensar and companies which have got geographical well diversified. We have identified these 4-5 companies but all the others also are falling in line and after a long time over the next 6 to 12 months you will see the returns coming in from the midcap IT to be in a very narrow range and there will be very few stocks which will outperform or underperform so that does make the task of stock picking a little bit easier."