Credit Suisse 'Neutral' on HCL Tech with target of Rs 320/sh

MUMBAI: Credit Suisse has maintained 'Neutral' rating on HCL TEChnologies after the IT company announced its quarterly results. The FII has a price target of Rs 320 per share on the stock.

“HCLT reported good Mar-10 results, with revenues and profits beating estimates by 2% and 7% respectively. The top-line surprise was driven by the infrastructure segment, which grew 15% qoq - continuing on a strong growth profile of the last 12M. IT services and BPO revenues came in-line with our expectations.

A look at the business segments in IT services shows that growth was lead by Engg./R&D business (11% qoq), while the enterprise application segment (EAS, which incl. Axon) grew only 2.5% qoq.

While strength in infrastructure segment has helped HCL Tech's growth profile in the last few quarters, we would look for management comments on the demand environment in EAS - which has so far remained muted on growth.

We have a Neutral rating on HCLT with Rs 320 target price,” the report said.