Go long on Persistent System stock: Gaurang Shah

In an chat with ET Now, Gaurang Shah, VP, Geojit BNP Paribas Financial Services, talks about IT stocks. Excerpts:

ET Now: Give me one idea in midcap IT that you are still bullish on after the run-up and the reasons thereof.

Gaurang Shah: My understanding is that some of the midcap IT companies can actually outperform in terms of giving you return on investment.

You will see IT sector performing well and of course you have the tailwind of rupee dollar equation. Now, if I put all these things in perspective and throw in the valuation case over here, my understanding is though there is rich valuation but there is still scope for making money over there.

So Persistent System would be the stock that I would possibly advise to go long on.