Amidst the current hype over large cap IT stocks on Dalal Street, several of their mid-cap counterparts have also displayed a strong performance over the past fortnight. | |
| In fact, several mid-cap stocks have shown a faster appreciation in percentage terms over the past fortnight vis-a-vis their larger peers. |
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| Analysts highlight that investors are still buying mid-cap IT stocks, as P/E ratios for these stocks are still lower than their larger players. |
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| Agrees P Phani Sekhar, IT analyst, Angel Broking, "The mid - cap IT sector is showing growth potential but the underlying reason still remains that valuations are attractive for these stocks." |
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| For instance, PSI Data Systems has gained about 13.8 per cent over the past fortnight as compared to a 2.7 per cent gain in the BSE's IT index. |
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| Meanwhile, Tulip IT Services has gained about 13.3 per cent during this period, while Mastek has gained 8.9 per cent. In contrast, TCS has gained about 3.2 per cent during the past fortnight, while Wipro has moved up about 2.3 per cent. Infosys has, however, performed better than its peers on the bourses and gained about 5.64 per cent during this period. |
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| Despite the current run up in mid-cap stocks, Mastek trades at about 15.6 times trailing earnings, while Tulip IT Services gets a discounting of 28 times, say analysts. Infosys on the other hand gets a trailing discounting of about 36 times, while it is 36.5 times for TCS. |
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