Infosys, TCS, Tech Mahindra & MindTree top picks from the IT space: Kawaljeet Saluja

In a chat with ET Now, Kawaljeet Saluja, Executive Director and Head of Research, Kotak Institutional Equities shares his views on IT stocks.

ET Now: What have you made of the IT earnings so far? What could be the pecking order in terms of a performance as well as valuation game?

Kawaljeet Saluja: The results have been positive. There have been deal closures. The companies have reported robust sequential revenue growth. The commentary for the rest of the year has also been encouraging.

As far as our pecking order is concerned, our top pick amongst the tier 1 name is Infosys in which we see continuation of a strong revenue growth backed by margin expansion. It could also drive some PE re-rating. After that, we prefer TCS. These are our top two picks in the tier 1 bracket.

ET Now: Do IT stocks have a long way to go?

Kawaljeet Saluja: There is a reasonable upside across many names in the IT sector. The sector will perform well and within that, we are pushing Infosys, Tech Mahindra and MindTree.