"Infosys is the name to be reckoned with globally for excellence in all facets like marketing, delivery and strategy"
27-Nov-2000 •Aabhas Pandya
Kothari Pioneer Information Technology (KPIT) is the first IT-dedicated fund in the Indian fund industry. Managed by R Sukumar, the fund has given a return of 107% since launch. Fund manager for KPIT since inception in August 1998, Sukumar considers Infosys to be the largest contributor to the performance of the infotech fund.
1.You have been managing KPIT for more than two years now. Which has been your favourite stock for the fund and why?
Sukumar: Infosys has been my favorite stock. The company has strived hard and improved fundamentals on a continuous basis emerging as a force to reckon with, globally, in software services. The company has excelled in all facets like marketing, delivery and strategy resulting in creation of extraordinary value for shareholders. Infosys has been the largest contributor to the performance of the Infotech Fund.
2. Even if your favourite stock was perceived to be overvalued, would you still buy more quantity?
Sukumar: No. If I do not find value even in the best company, I would sell and wait for an opportunity. Wipro is one such example in the past. I had sold the stock when I considered the stock to be overvalued and bought it back after it fell sharply.
3. Which mid-cap holdings in KP Infotech are tomorrow's bluechips?
Sukumar: Hughes Software is a good company and seems to have the potential to emerge as a major player in the telecom/data-com software segment. The positive factors are ability to attract talent, focus on select verticals, possible breakthrough for its products and quality of management.
4. Among the three unlisted stocks of Planetasia, 123india.com and Alberg Software, which of these companies, you think would give you the best return on listing (based purely on business and fundamentals)?
5. Which is your most fancied but unlisted IT company in India?
Sukumar: I-flex and Silicon Automation are interesting companies. They are very different from the type of companies that are currently listed and will be very interesting stories.
6. Which, in your opinion, are the non-performing holdings in your portfolio and would you exit them at first opportunity?
Sukumar: We have already exited from the companies where we do not see any upside.