Buy Majesco with a target of Rs 549: Daljeet Singh Kohli

In a chat with ET Now, Daljeet Singh Kohli, Head of Reserach, IndiaNivesh, shares his view on Mastek and its newly-listed arm Majesco.

ET Now: Do you track midcap IT space? If yes, then what is your view on Mastek and Majesco?

Daljeet Singh Kohli: In fact this has been a best-performing stock. We started Mastek as combined entity at Rs 140 and it has given us phenomenal returns. You can see what number the separate companies are giving you; it is Rs 800. We have actually recommended Majesco as our Diwali pick for next one year. We believe that the basic fundamental i.e. company’s insurance vertical in US is doing well. There is a scope that the gap between its nearest peer Guidewire that trades at nine times of EV to sale and Majesco which was trading at around 2.5 times will fall. We believe that as company scales up — it has already taken over two companies —this gap will narrow down. So therefore, we had given an initial target of Rs 549 and then of course in a longer term, it can go beyond Rs 800-900-odd levels.