IT space in for a tough time this year; TCS, Infosys set to lose: Amit Khurana

In a chat with ET Now, Amit Khurana, Co-Hd Eq & HoR, Dolat Capital Market, shares his stock ideas.

ET Now: Give me two stocks which could give a 15 per cent plus return this year, and two stocks which could still fall by 10 per cent plus this year.

Amit Khurana: So I think, PNC looks interesting to me and we have done some very basic thumb rule numbers for Adlabs Imagica that looks interesting.

ET Now: Which stocks can fall 10% this year?

Amit Khurana: Few. IT could be in for some tough times.

ET Now: Large cap IT?

Amit Khurana: Yes.

ET Now: The PE multiples are in early teens?

Amit Khurana: They are, but I am hearing something which does not give me the comfort.

ET Now: What are you hearing?

Amit Khurana: So what I am hearing is that the utilisation levels have started dropping off. Getting new contracts, and I am saying, specifically, for two names, TCS and Infosys, pricing has become a very important element. I am hearing more evidence of that on TCS than Infosys.

ET Now: I mean there is a reason why the PE multiple for TCS is contracting, markets could…

Amit Khurana: Could be a reflection, markets are taking a notice of that. So, I think IT will have some challenges there.