Midcap IT looks attractive, but valuations a concern: Rajat Sharma, CEO, Sana Securities

In an interview with ET Now, Rajat Sharma, CEO, Sana Securities, talks about the midcap IT space.

ET Now: Not a bad call, you are bullish on IT. IT space at large is doing well. Aside of large cap IT, any thoughts on midcap IT stocks, anything that you like there, a lot of these are moving around?

Rajat Sharma: We were looking at a couple of midcap IT stocks until about a year back, which were KPIT and Hexaware. Some of the things that we mentioned in our research at that time are still as true as they were back then. Which is that the way these companies are and the way technology is evolving, there is every likelihood that the midcap IT companies from India and from everywhere else in the world will be able to eat into the market share of large cap IT and that is exactly what we saw at least in the last one year. The speed and the pace at which Hexaware, KPIT, and these kinds of companies were able to add orders were far higher than large cap, on a comparative basis. Therefore, midcap IT still looks attractive. However, right now, the valuations are making me jittery to…