Nilesh Shah has been buying through the volatility. That much is clear. What is equally clear is what he has not been buying, and for a market that has spent months debating whether the IT selloff has gone too far, his answer is a cold splash of water.
"We still do not know if the current business models are valid or if they will have to be reoriented," said Shah, MD and CEO of Envision Capital, in a conversation with ET Now. For a sector where mid-tier valuations have compressed from 35x to around 24–25x and top-tier names have slid from 23–25x to 15–16x, that is not a small thing to say.
