IT now a tactical buy, not a portfolio bet; 4 other stocks to invest in: Vinit Bolinjkar

economictimes.indiatimes.com:

Vinit Bolinjkar, Head of Equity Research, Ventura Securities, says he is constructive on Shalby Hospitals and thinks the stock can touch Rs 500 in the next couple of years. The second stock he likes is NTPC and says the NTPC green IPO should lead to a significant re-rating of the stock. He also expects a 50% upside on Senco Gold. He is also gung-ho on Wockhardt where he expects outsized disproportionate returns given that the company is coming out with a new molecule which, once it goes into commercial production, may see the stock double.

Now that TCS has kick-started the earning season, what do you make of this quarter that has gone by? We did have some headwinds coming by. There was a heatwave, elections and so lots were happening in this quarter. Give us a generic view and also your specific view on what IT companies are expected to do and how their numbers are expected to look given TCS has come out with a stellar set of numbers.
Vinit Bolinjkar: TCS and Tata Elxsi numbers are slightly lower than those reported in the previous quarters, but the growth trajectory that both the companies have guided for is resoundingly strong and the pipeline also seems to be improving and getting better.

We earlier were negative on IT stocks and here we are elevating them to accumulate kind of position. We believe that the numbers if they pan out the way they have been mentioned, if they can do 6% growth QoQ, then we are looking at potentially 20% to 25% top-line growth and that will flow into the bottom line because their addition to employee count has also gone up so obviously it is in line with their anticipation that the order book will translate into revenues.