Exit Persistent, prefer Mindtree, Tech Mah: Gaurang Shah

Gaurang Shah of Geojit BNP Paribas Financial Services told CNBC-TV18, "We did have a positive coverage on Persistent Systems but post the profit and margin warning, we have recommended a reduce from the portfolio on Persistent Systems. We believe that turnaround time in terms of earnings visibility is going to take a far longer kind of time horizon and we don’t expect any meaningful recovery at least for the next two-three quarters."He further added, "My advice would be to make a switch over here in the midcap IT space, one can either look at Tech Mahindra or Mindtree. Tech Mahindra again had issued a profit warning but we believe that turnaround time over there is going to be lesser compared to Persistent Systems and on Mindtree a fantastic set of numbers we have already seen. On Tech Mahindra one year time horizon we have set aside as Rs 560 and on Mindtree with a one year time horizon, we have set a target of about Rs 1,450."