Prefer to wait for this quarter’s results before buying IT: Daljeet Singh Kohli
Daljeet Singh Kohli, Head — Strategy & Research, Vasuki India Fund, says We have some small amount of IT, very small allocation as of now. Mainstream IT, the two enabled services, we already have a good allocation there. But in mainstream IT, we would like to wait for this quarter’s number. The commentary from Accenture was that probably things will take much longer than what many of the analysts and the Street was expecting. That revival will happen sooner. Everybody was saying that H2 of this year will be much better but that does not seem to be the case. So maybe after the Q2 numbers, once the managements give their commentary, we will have a little more idea about it.
What is your take regarding some of these new-age tech names? Zomato is finally seeing a bit of the upside but it is now past the level of 100 comfortably but you have Nykaa and the others which continue to languish? What is your view for the entire space?
We continue to avoid them as of now mainly because we want to see some more numbers coming in – a lot of ESOP related and many one-offs extraordinary items.
All these things still continue with many of these companies although they are very clearly now on the path to profitability but let them reach that profitability then we will probably look at them. As of now, we are playing this theme through some of the IT-enabled service providers so maybe something like a lounge service provider or something like a marketing help kind of thing with the companies which provide the marketing aid. We have some of those service providers in our portfolios but these pure play new-age technology companies we are still avoiding.
End of the week we will have the monetary policy outcome as well. What is the
