Sandeep Muthangi, VP Research at IIFL Institutional Equities told CNBC-TV18, "My top picks in IT are Tech Mahindra and Persistent Systems. Things are looking good in general for IT and in the Indian midcap space we have a few companies that do not necessarily do just IT services; Persistent and Infotech Enterprises etc are slightly different companies.”
He further added, “Persistent Systems is in a very interesting space. Over the past couple of years they have positioned themselves very well in analytics and mobility and all the new technologies that are happening. So, slowly the niche area of this product development that this company was restricted to is giving way to a much broader market of - even the normal enterprise IT services, so it is in a very exciting space.”
“The valuations are also not expensive. It trades at 12-12.5 times one year forward and companies that are in this space, there are few east European companies which trade at much expensive valuations. So both from growth and valuation perspective Persistent looks good. Tech Mahindra is having resurgence in growth, the enterprise part of the business is doing well and valuations are still cheap.”
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