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Sell on rise for largecap tech and software services stocks: Dipan Mehta
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CNBC TV18•15-10-2026, 09:53
Sell on rise for largecap tech and software services stocks: Dipan Mehta
- •Market expert Dipan Mehta advises investors to use a sell on rise strategy for largecap and pure-play software services companies due to stagnant growth and secular challenges.
- •Mehta recommends focusing on niche companies like Tata Technologies, Tata Elxsi, KPIT Technologies, Persistent Systems, or Coforge that can successfully ride the AI wave.
- •IT companies need a minimum top-line growth of 15 percent for investors to make decent returns, as slower growth of 5 to 10 percent will struggle to meet expectations.
- •Artificial intelligence will have a growing impact on the sector, with benefits likely concentrated among a limited number of specialized and adaptable businesses.
Key Questions Answered
Market expert Dipan Mehta recommends a "sell on rise" strategy for largecap and pure-play software services companies due to stagnant growth and secular challenges.
Dipan Mehta highlights niche companies focused on specific verticals such as Tata Technologies, Tata Elxsi, and KPIT Technologies, alongside aggressive firms like Persistent Systems and Coforge that handle the AI wave effectively.
According to Mehta, an IT company must achieve a minimum top-line growth of 15% for investors to make decent returns, as companies growing at 5% to 10% may struggle to meet expectations.
