PN Vijay`s view on IT space

PN Vijay, Portfolio Manager, www.askpnvijay.com shares his view on IT space. He also says that one has to pick and choose the better name in entire IT pack.

Vijay told CNBC-TV18, “One won’t avoid IT stocks completely. One has to pick and choose because the valuations are so interesting. The obvious call is Larsen and Turbo though the results were not so great, the outlook which the company talked about was extremely positive and the order execution appears to be on course. So that of course stand by itself and I guess everybody would say that.”
He further added, “The other interesting ones there are those which have a toll approached and a revenue approach rather than developmental approach. I had earlier indicated that IL&FS Network is a great stock given the fact that they have some very profitable contracts and they have tolling, they have advisory revenue.”
“IRB Infra once the chairman is cleared of these charges has gotten beaten down so much. So infrastructure one is going for those stocks which are getting NHAI contracts with a caveat that the debt levels should be low because if the debt levels are low then the orders translate directly into huge profits so there could be a remarkable turnaround in the bottom-line next few quarters. One has to pick and choose.”