Prefer TCS, Infosys: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "The weakness in top tier IT names including Infosys is expected to stay over the next 2-3 months primarily based on the fact that in Q3 there will be a lot of logs and again the kind of headwinds that the management has indicated in terms of how revenue wins will come through and what kind of impact it will have on the EBITDA and the EBIT of these companies, I think it is a well known profound fact Q3, Q4 are going to be weak but again if we extrapolate numbers for FY17 both in dollar and rupee terms, our own expectations are 10.8 and 11 percent growth respectively. Again I think the tailwinds are there for a stock like Infosys. There is every chance for utilisation levels to go up by 250-300 bps which will again indicated that with the client mining that they have done, the new order wins that they have received, I think they will be in a far better position in FY17.""I think a staggered way of investing into the top tiered names is something that we are suggesting. Valuations close to 17 odd times FY17 again looks very attractive. So, over the next 2-3 months a staggered way of investing in Infosys as well as TCS in the top tier names is something that we are really suggesting our clients to do," he added.