Polaris a top pick in midcap space: Prabhudas Lilladher

Polaris is our top picks in the midcap space at this point of time, says Shashi Bhusan, IT Analyst, Prabhudas Lilladher.

Bhusan told CNBC-TV18, "Polaris is our top pick in the midcap space at this point of time. Obviously, the revenue momentum takes a pause, slightly slower than what we anticipated, only marginal slower on the like, 50 basis points, half percentage point or so. We expect that momentum would get stronger."
He further added, "They have started seeing good traction for their product business and we are working with 30% growth product business and as the revenue contribution from the product business improves, we expect that margin of that company will be more sticky and could see an uptake. So this quarter, they expanded the margin by 82 basis points, which was a big positive surprise for us."
"We were working with almost like 50-60 basis points of margin dip. So we continue to remain positive. We believe that the product acceptability in the market is going to improve. This is a first quarter when they reported that they are a product in plate, has featured in IBS Journal, as 7th rank, which is again will improve the brand equity of the product and the company as well."