The Truth About IT Earnings: Why Low PEG & Management Quality Matter More Than Price

Why is one of the market's most seasoned pros avoiding IT services entirely? In this snippet, Aniruddha Sarkar (Co-founder and CIO, Equinova Investment Managers) breaks down why he hasn't held an IT stock in eight quarters. Despite TCS hitting multi-year lows, he argues that mid-single-digit earnings growth simply doesn't justify current P/E multiples. The danger? A PEG ratio (Price/Earnings to Growth) that’s way out of comfort zones and the looming threat of AI disproportionately impacting large-cap headcounts. Instead of chasing a "cheap" sector, Chokkalingam reveals his formula for success: combine high management quality with business tailwinds in sectors like Auto, Power, and Aerospace. Learn why being in the "right industry" beats buying the "wrong valuation" every single time!