Do not expect good numbers by IT firms for few quarters; prefer select frontline IT names: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his view on IT names.

ET Now: What is view on Tech Mahindra? Were you disappointed with the kind of commentary that came in?

Deven Choksey: We are getting too much habituated of looking at every company on a quarterly basis. Somehow or the other, every business may not give the justice on being, on every quarter.

One will have to accept it as a reality because we are living in an uncertain environment — many businesses would see misses during this particular period. From the long-term investment’s point of view, I still like frontline IT companies — particularly the first two names which we always put across. These firms have sufficient amount of cash on the balance sheets to change with the change in the business — largely aligning towards the digital economy, cloud computing space.

I would think that with the inorganic growth proposition that they have, these companies could possibly stay among outperformers going forward. Any correction would thus be a good opportunity to buy into these counters.

Certainly, if we have to pick and choose some ideas, we will have to accept that we might not see good performances for some quarters. But when markets give up, that is the time when investors get in.

One could possibly stay invested with good quality names and buy more in the corrective phase.