Buy Rolta stocks in small cap IT: JV Capital

ET Now Fundamental Check with Ashit Suri, Fundamental Research Analyst, JV Capital Services.

Would you buy into any of the small-cap IT stocks today? Some of them have shown a bit of an uptick, the likes of a Hexaware for example?

Not Hexaware but if I was to look at accumulating the smaller IT players, I would recommend Rolta for that matter. Besides that, may be if one is looking at a long-term horizon, I would take a chance and invest in Mastek, which of course is Europe related in terms of revenue and the quarter guidance for the next quarter is also very bleak. It is only the valuations, which are very compelling now, it is trading at just six times, so anything in terms of a positive surprise or order flow going ahead could give a substantial upside from these levels, so these are stocks, which I would recommend over medium to long-term, something like a Rolta on performance basis and Mastek, just purely on valuations and trading very cheaply today. For the larger cap space, of course I would wait and watch because I do not expect them to outperform. Whatever rise one is seeing in some of these stocks could be because of the rupee depreciating lately.