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Portfolio Organizer Magazine:
IT Stocks : Catch Them Young
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This article focuses on sector-specific analysis of various new and old IT companies listed on the Indian stock exchanges.

There is a buz among equity gurus as well as investors about the Sebi's move to make (Initial Public Offering) IPO grading mandatory for all companies in their offer documents. The issue emerged during tightening of the real estate IPOs through disclosure norms. Grading of IPOs was introduced earlier as an optional measure by the Securities and Exchange Board of India (Sebi) as part of its initiatives to protect investors' interests.

However, there are two types of retail investors who invest in IPOs, one that applies for IPOs for listing benefit, and the other that invests for a longer period. Credit Rating Agencies (CRAs) will grade an IPO on the basis of its fundamental strength and expected business management in future. There is need for further studies from the investors' perspective and to explain investment viability.

The present article is written keeping in mind two different approaches. One is to select newly-listed stocks with good start on the listed price performance. The second approach is to find out those stocks that are having good fundamentals and have reasons to perform better. This does not provide any grading but would be helpful to investors looking for medium-to-long-term investments in particular share issues and deciding whether they are worth buying or not. The basic intention is to help medium-to-long-term investors to select IT stocks for their portfolio. Keeping "catch them young" as the central theme, we have short-listed some recently-listed top-performing scripts.

 
 
 

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