Prefer TCS over Infosys among large cap IT stocks: Bhavin Shah

In a chat with ET Now, Bhavin Shah, CEO, Equirus Securities, shares his views on the Infosys rejig. Excerpts:

ET Now: How material impact would this news be on Infy?

Bhavin Shah: I would not consider it to be very material. There has been some breach of code of conduct and for that, this sort of an action has been taken.

ET Now: So you do not believe it gives out any signal to clients, and does it have any impact on the BPO operations?

Bhavin Shah: I guess they would have to manage the transition quickly and effectively, but I still think it is not having any significant negative impact. As far as clients go, I am sure there will be some communication done to clients to address any concerns.

ET Now: So what is the pecking order in large cap IT because the earnings season has been largely a mixed bag, there has been news flow like today in Infosys. Does it remain as the head of the pack or do you still prefer TCS, for example?

Bhavin Shah: We are more comfortable with the growth outlook for TCS for sure. We think Infosys, whether it would declare an excellent revenue growth or not, that we have to wait and watch. They obviously have done a good job of improving the profitability. So TCS is still ahead of Infosys.