TCS, MindTree and Persistent Systems are good bets in the IT space: Dipan Mehta

In a chat with ET Now, Sandeep Shenoy of Anand Rathi Financial Services shares his views on the IT space. Excerpts:

ET Now: What do you do with IT space?

Dipan Mehta: I would go with the best of breed, that is TCS. Then we have companies which have shown a certain degree of outperformance in the past two-three quarters and only two names comes to mind. The first is MindTree. It came out with a very good set of numbers and whatever the strategy the management has been executing over the past few years, it has really played out well. Their growth numbers are far better than their peer group.

Second company - whose results are not yet out but which we are looking forward to - is Persistent Systems because they are in that sweet spot where they are benefitting from digitisation trends which are taking place in the IT industry. Over the years we have seen that the absolute investment ideas within midcap IT are narrowing rather than expanding and within the large cap also, it is getting polarised towards two or three stocks in the likes of TCS or HCL Tech and Tech Mahindra. Hence, one has to be extremely selective within IT.