Midcap IT stocks to give best returns, says Mehta

Midcap IT stocks to give best returns, says Dipan Mehta, Member- BSE/ NSE.

Mehta told CNBC-TV18, “Investors are kind of tanking up on TCS at the expense of Wipro and Infosys and rightly so, they delivered a spectacular set of numbers and of all the management display the maximum confidence to maintain the growth rates.”
He further added, “Our strategy for the IT sector has to be to buy into the midcap IT shares and we do feel that after several years this could be the year where midcap IT will outperform large cap by a huge margin. Most of the companies over there- there is scope for PE re-rating as well as their growth rates will more or less be in line with the large cap IT companies or at least with whatever NASSCOM is projecting. So, we feel that some of the midcap IT companies will deliver good set of returns for shareholders. One needs to do a bit of a research into which stocks would really outperform, but for investors safe strategy would be to buy into a basket of 4-5 large midcap IT companies and kind of ride the wave. So that’s basically- they also benefit from the rupee depreciation and a lot of midcap IT will benefit to a larger extent some of the large cap IT as well.”