Bullish on HCL Tech: Gopinath Natarajan, IIFL PReMIA
Our picks are HCL Technologies on the mid-cap side trading at about 12-13 times growing at about 30-35% with a possibility of a margin expansion this year.
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| Updated: Gopinath Natarajan, EVP, IIFL PReMIA, in a chat with ET Now, gives his call on HCL Tech
Do you like anything from the mid-cap IT space because the difference between large-cap IT and mid-cap IT is about 80%?
Our picks are HCL Technologies on the mid-cap side trading at about 12-13 times growing at about 30-35% with a possibility of a margin expansion this year, so this is one stock where we think there is enough room for valuations also to expand. I do not know if we can call Satyam a mid-cap but if you look at the valuation discount, it is pretty large, trading at about three or four times EV/EBITDA where the next comparable peers are trading at about 8-10 times EV/EBITDA, so these two stocks, yeah, we like on the IT space.
Do you like anything from the mid-cap IT space because the difference between large-cap IT and mid-cap IT is about 80%?
Our picks are HCL Technologies on the mid-cap side trading at about 12-13 times growing at about 30-35% with a possibility of a margin expansion this year, so this is one stock where we think there is enough room for valuations also to expand. I do not know if we can call Satyam a mid-cap but if you look at the valuation discount, it is pretty large, trading at about three or four times EV/EBITDA where the next comparable peers are trading at about 8-10 times EV/EBITDA, so these two stocks, yeah, we like on the IT space.
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