Is it too late to enter PSU banking space now? Rahul Shah answers

economictimes.indiatimes.com:

“In the last so many years, PSU banks have been hammered and not been given fair value, so most of them are still trading at one-time book. I think still there could be a good enough upside from here,” says Rahul Shah, MOFSLEdited excerpts:

We have major IT companies’ results next week. IT has been rather volatile, it has continued to decline for three straight weeks. But when we talk about Friday in particular, it is the top sectoral gainer as well. In light of these results, where do you see the IT sector headed? What do you think are these results going to look like?
Nifty IT moved up around 25% in 2023. My sense is there are a lot of headwinds and this quarter, numbers also should be muted. Most of the companies as a sector will record muted earnings. Our channels check suggests that the spending on the IT companies has been less and no major order book has been there.

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We need to adopt a stock-specific approach rather than looking at the entire IT pack as a whole. If we compare tier I and tier II companies, the midcaps had a very good run-up; a lot of stocks are up between 40-50%. There is a limited upside in those stocks as compared to largecaps. Largecap IT companies like Infy and HCL Tech should report better numbers and an investor should look at them for a longer-term perspective.

PSU banks have seen some spectacular movements in the days gone by and as well as the last year. If anybody wants to enter this space now, is it too late or do you see further upside?