Bullish on Tech Mahindra and KPIT: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Mintdirect.com, shares his views on Tech Mahindra.

ET Now: Between large cap IT and midcap IT now, would you rather prefer midcap IT stocks because of the valuations or you believe even they have run up and now even in midcap IT, there are the likes of Tech Mahindra or a MindTree, etc, which have done very well and trading at highs versus maybe some of the others which have just started to move up, the likes of Polaris or an NIIT or Hexaware so to say.

Avinnash Gorakssakar: Clearly, my sense is Tech Mahindra is one stock where possibly some consolidation will be seen but going forward looking at the kind of expansion in margins. The kind of top line growth is expected, I would believe that from the midcap basket, Tech Mahindra is a quality play, some more upside definitely over the next couple of quarters is possible.

KPIT Technologies is one company where possibly the markets were disappointed with the Q3 numbers but looking at the kind of order visibility. The kind of niche auto kind of space which this company operates in US and Europe, around 177-178 it definitely offers a good incremental upside and again marquee clients. I would say Tech Mahindra and KPIT look attractive.