Tech Mahindra looks good, says Dipan Mehta

Dipan Mehta, Member BSE/NSE told CNBC-TV18, “Most of the midcap IT stocks will tend to perform better as the rupee depreciates. Tech Mahindra were amongst the few companies which delivered a good set of numbers for the March quarter. So, I would be positively inclined towards both Tech Mahindra as well as Mahindra Satyam. Post formal merger one should expect slight bit of re-rating of the PE multiple as well and some amount of stability or consistency coming through in the earnings of the combined entity.”

He further added, “It is a good stock to watch out for and keep an eye on the rupee. If it depreciates even further then you could have very good results coming out maybe in the September quarter for the entire IT industry. If US economy does tend to do better going forward then that will be an added boost for the entire sector. So, I would say that we are positive on IT and midcap IT stocks as well but only the performers within them, that being Tech Mahindra and other companies which come to mind are companies like KPIT Cummins and MindTree which have also delivered good set of numbers last time around.”