Shah said the firm has not re-entered Infosys after exiting the stock earlier and remains cautious on large-cap IT despite leadership changes at the company. He expects the external demand environment to remain the key factor for the sector rather than management transitions.
Commenting on Infosys’ CEO transition, Shah said appointing an internal candidate was the right move given the current environment. “The big concern continues to remain the outside environment,” he said.
While avoiding pure-play IT services companies, Sameeksha Capital continues to own IT-linked businesses such as Mastek, Sagility and iValue Solutions. Shah said Sagility’s long-term outlook remains intact despite concerns over artificial intelligence.
“The concern remains: what is the impact of artificial intelligence (AI) on their growth?” he said. However, he added that management has historically outperformed its own guidance and “we feel that the management is being conservative.”
Explaining why the fund is avoiding large-cap IT, Shah said slowing industry growth and AI-related uncertainty limit return potential.
Outside IT, Shah said Sameeksha Capital continues to have a large allocation to aviation and remains positive on InterGlobe Aviation despite geopolitical risks affecting the sector.
The firm also favours hospitals, domestic-focused pharmaceutical companies, wealth management firms, electronic contract manufacturers such as Dixon Technologies, select private banks, smaller non-banking financial companies (NBFCs) and life insurance companies.
Among banks, Shah said the fund has rebuilt its position in ICICI Bank, citing consistent execution, while exiting HDFC Bank from its core strategy after what he described as disappointing first-quarter results.
In the NBFC space, he highlighted MAS Financial, saying the company has delivered consistent performance despite valuation-related pressure from a large shareholder overhang.
For the full interview, watch the accompanying video
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