Right time to enter into IT stocks: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director - Altamount Capital Management, shares his view on the largecap IT space.

ET Now: Let me paint the picture for largecap IT firms. Infosys gives hopes, TCS offers consistency, Wipro has got attractive valuations and HCL Tech — even as it has come up with subpar numbers — is cheap. What is you view on largecap IT space?

Prakash Diwan: There is an underlying hope in all IT stocks. Wipro is looking better because it is probably the cheapest out of the IT lot. One can hope that whatever changes they are talking about finally delivers.

ET Now: But they have been talking about it from last three years. Isn’t it?

Prakash Diwan: But others are also talking about changes. Infosys for that matter is very sounding and convincing that they have a few may be innovative plans, new product launches and new themes that could drive the future growth. But these are all driven by how the management is guiding.

We have not yet seen the managements turning extremely optimistic and nobody has been going overboard. Even if you look at TCS’ management, the body language shows that they are fairly cautious.

They may be of view that things may not be as bad as we thought. This could be the right time to get into these IT names as the valuation will otherwise get stretched again. Right now, Infosys and Wipro probably are…TCS of course is a different.

TCS always prevails in a band where you have to accept premium valuations. Cloud is going to be the next big wave so anybody who is…