Arihant capital markets is bullish on HCL Tech and has recommended buy rating on the stock with a target of Rs 517 in its September 7, 2011 research report.
“HCL Tech has shown strong all round growth in all service lines in the recent quarters. HCL Tech has been aggressively adding clients in the last 12 months. It’s positioning in the market as a leader in IMS and a credible position in ADM has made it possible for it to bid for larger projects. Only BPO remains a worry in the near term. We can safely expect HCL Tech to better its margins going ahead as a number of levers are still available. Moreover, BPO related losses which has been seeing a downtrend will also help in supporting margins.”....
Arihant capital markets is bullish on HCL Tech and has recommended buy rating on the stock with a target of Rs 517 in its September 7, 2011 research report.
“HCL Tech has shown strong all round growth in all service lines in the recent quarters. HCL Tech has been aggressively adding clients in the last 12 months. It’s positioning in the market as a leader in IMS and a credible position in ADM has made it possible for it to bid for larger projects. Only BPO remains a worry in the near term. We can safely expect HCL Tech to better its margins going ahead as a number of levers are still available. Moreover, BPO related losses which has been seeing a downtrend will also help in supporting margins.”
“IMS has been the driving force of HCL Tech in the recent times. Expected to be the next big thing in the IT domain, HCL’s expertise in IMS will go a long way in helping it to go to the next level. The recent large deals that are coming HCL’s way are a testimony to the fact that among Indian vendors HCL dons the mantle of leadership in IMS. The Axon acquisition has helped HCL to create the largest SAP global partner in the world. It has given HCL Tech the capability to provide high-end service especially in the consulting domain and move up the value chain.”
“The recent outperformance that HCL Tech has been able to put up has given us the conviction that it is only a matter of time before HCL Tech is also considered a Tier-1 player at par with the top 3. Considering its expertise in the fast upcoming IMS services which we expect to be the next best thing in the IT sector, we believe the company will become a serious case for re-rating in the coming times if it continues with its out performance. We believe that the company will be able to post a topline growth of 18.7% and 13.4%, and a bottomline growth of 29.9% and 14.6% in FY12E and FY13E respectively. We have valued HCL at a PE multiple of 16x which is at a discount of 30% to the 23x multiple that we allot for Infosys and TCS and 20% to Wipro (which we value at 20x). We therefore arrive at a target price of Rs.517. We thereby initiate coverage on HCL Technologies with an ‘BUY’ rating,” says Arihant capital markets research report.
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“HCL Tech has shown strong all round growth in all service lines in the recent quarters. HCL Tech has been aggressively adding clients in the last 12 months. It’s positioning in the market as a leader in IMS and a credible position in ADM has made it possible for it to bid for larger projects. Only BPO remains a worry in the near term. We can safely expect HCL Tech to better its margins going ahead as a number of levers are still available. Moreover, BPO related losses which has been seeing a downtrend will also help in supporting margins.”....
Arihant capital markets is bullish on HCL Tech and has recommended buy rating on the stock with a target of Rs 517 in its September 7, 2011 research report.
“HCL Tech has shown strong all round growth in all service lines in the recent quarters. HCL Tech has been aggressively adding clients in the last 12 months. It’s positioning in the market as a leader in IMS and a credible position in ADM has made it possible for it to bid for larger projects. Only BPO remains a worry in the near term. We can safely expect HCL Tech to better its margins going ahead as a number of levers are still available. Moreover, BPO related losses which has been seeing a downtrend will also help in supporting margins.”
“IMS has been the driving force of HCL Tech in the recent times. Expected to be the next big thing in the IT domain, HCL’s expertise in IMS will go a long way in helping it to go to the next level. The recent large deals that are coming HCL’s way are a testimony to the fact that among Indian vendors HCL dons the mantle of leadership in IMS. The Axon acquisition has helped HCL to create the largest SAP global partner in the world. It has given HCL Tech the capability to provide high-end service especially in the consulting domain and move up the value chain.”
“The recent outperformance that HCL Tech has been able to put up has given us the conviction that it is only a matter of time before HCL Tech is also considered a Tier-1 player at par with the top 3. Considering its expertise in the fast upcoming IMS services which we expect to be the next best thing in the IT sector, we believe the company will become a serious case for re-rating in the coming times if it continues with its out performance. We believe that the company will be able to post a topline growth of 18.7% and 13.4%, and a bottomline growth of 29.9% and 14.6% in FY12E and FY13E respectively. We have valued HCL at a PE multiple of 16x which is at a discount of 30% to the 23x multiple that we allot for Infosys and TCS and 20% to Wipro (which we value at 20x). We therefore arrive at a target price of Rs.517. We thereby initiate coverage on HCL Technologies with an ‘BUY’ rating,” says Arihant capital markets research report.