There is a risk reward ratio in midcap IT stocks: Ajay Parmar, Emkay Global Financial Services

Ajay Parmar, Head of Institutional Research, Emkay Global Financial Services in an interview with ET Now talks about midcap IT stocks.

What is the call on midcap IT stocks?

In Midcap IT space, I like Hexaware. If you look at it on a quarter to quarter basis it has been showing very good performance much higher than the large peer companies in the same sector. Even though people may not like midcaps in IT but still there is a risk reward ratio. Last two-three months they have been getting bigger order also so I believe it is fairly priced and we can see a decent upside from this level.

The stock is fairly priced, why do you think this stock will see some upside because stocks which are under-priced they always see a rally?

I would say that the kind of news flow that we have seen in terms of new orders which will keep on coming for the next two to three quarters and that will keep stock buzzy.