ICICI Securities maintains outperform rating for HCL tech
HCLT has shown good operational performance, evident from its improving margins.
By ET Bureau |
HCL Technologies (HCLT)
Research: ICICI Securities
Rating: Outperform
CMP: Rs 220
HCLT has shown good operational performance, evident from its improving margins. We expect the company to maintain its EBDITA margins with marginal upward bias with the expectation that HCLT will be able to execute more deals offshore.
The company expects sectors like life sciences, financial services and telecom to be growth drivers, going forward, which have traditionally grown at CQGR of 10.4%, 4.9% and 8%, respectively, over the last four quarters. We acknowledge the possible pricing pressure and maintain pricing to be flat for the next two to three quarters.
Thus, we are conservative in our estimate and believe the company will grow at 20% CAGR over FY08-FY10E. We value the stock with our derived target price of Rs 296.
Research: ICICI Securities
Rating: Outperform
CMP: Rs 220
HCLT has shown good operational performance, evident from its improving margins. We expect the company to maintain its EBDITA margins with marginal upward bias with the expectation that HCLT will be able to execute more deals offshore.
The company expects sectors like life sciences, financial services and telecom to be growth drivers, going forward, which have traditionally grown at CQGR of 10.4%, 4.9% and 8%, respectively, over the last four quarters. We acknowledge the possible pricing pressure and maintain pricing to be flat for the next two to three quarters.
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Thus, we are conservative in our estimate and believe the company will grow at 20% CAGR over FY08-FY10E. We value the stock with our derived target price of Rs 296.
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