UBS Securities positive on Patni Computer

Suresh Mahadevan, MD & Head of Indian Equities at UBS Securities is positive on Patni Computer Systems.

Mahadevan told CNBC-TV18, "In Mphasis we see strong growth over the next few quarters, so that is one stock we have been pushing. The other stock we have been positive on is Patni and there has been some M&A and we still continue to like that name." He further added, "My own sense is that given largecap IT has done so well and the demand side is not so different. I do understand the argument that sometimes midcap IT margins may not be as robust as the largecap ones but the valuation gap has been pretty big now, it is at historical highs. And at some stage we expect some level of convergence as investors look to switch out of some of the largecap IT, into the midcap names. My sense is in 2011, midcap IT should do slightly better than largecap IT."