IT sector a contrarian opportunity at current valuations: Aditya Shah

▤ Summary

Aditya Shah of Hercules Advisors says the IT sector now presents a contrarian buying opportunity as large-cap IT stocks trade at attractive multiples and yield. He favors the power sector (citing IEX and related companies), private banks and microfinance, chemicals after a correction, and premium real estate developers such as Godrej Properties. Shah warns on overly valued EMS companies that have missed cash-flow guidance and cautions investors about aggressive quick-commerce players, preferring disciplined operators like Blinkit. He also notes AI could disrupt traditional IT models but believes valuations make parts of the IT sector compelling for long-term investors.

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