HCL Technologies best among the IT services players: Saurabh Mukherjea, Execution Noble

Saurabh Mukherjea, Head of Indian Equities, Execution Noble, in a chat with ET Now talks about HCL Technologies.

Why do you think that this HCL Technologies is the best positioned amongst the IT service companies in India?

The theme that we have asked our clients to focus on is that inflation in India, historically, has been a big negative for stock returns. Inflation hits EBITDA margins and thereby reduces earnings growth quite dramatically. Hence, across the market, we are looking at market leaders who can deal with the rising inflationary pressures both in terms of dealing with input cost pressure and with EBITDA margin pressures.

We see that HCL Technologies, amongst the IT services firms, is the best positioned to deal with the global recovery whilst keeping a lid on input costs, on salary inflation in particular. So that’s the firm we think is the strongest play amongst the IT services players.