IT an ugly duckling for now, but this stock may be a bargain: CS

Moneycontrol BureauBrokerage house Credit Suisse feels some IT shares could offer a tactical opportunity even though the longer term picture appears lackluster.First quarter numbers from frontline IT companies like Wipro, TCS and Infosys have fallen short of estimates, triggering a sell-off in these stocks."Earnings estimates have indeed come off for the sector, particularly after the recent spate of poor results and guidance cuts, however P/E multiples have derated too, and the sector's P/E premium is now at five-year lows," says the Credit Suisse note to clients."This is clearly part of a longer derating process, but after these sharp legs down the sector's P/E does rebound for 3-6 months," the note says.According to Credit Suisse, HCL Technologies appears more attractively valued, compared to its peers like TCS, Wipro and Infosys."The derating of the sector has been broad-based, but for stocks like TCS, Infosys and Wipro the P/E multiples are still visibly higher than their troughs, making it harder to find a convincing value argument. For HCL Technologies, however, the one-year forward P/E is near five-year lows as is the relative premium to most other IT stocks," the note says.