Investors may expect 20% upside for HCL tech in 12 months: Deven Choksey, MD, KR Choksey Securities

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on HCL Technologies.

ET Now: What is the call on HCL Technologies?

Deven Choksey: It is true that the management is definitely giving very positive tone as far as the prospects are concerned for this company. And even if you look at the company at 11-12 kind of a price earning ratio, the valuation is not expensive. So both the prospects emerging for HCL Tech and the valuations are working in favour of any investor to add this particular stock in the portfolio vis-à-vis their frontline peers who are basically quoting relatively expensive at this point of time without much of a confidence on the growth side.

In case of HCL Tech, the growth is largely happening because of the initiative that they have taken on aggressive business model itself. They probably are not as gung ho about asking for the price vis-à-vis the kind of a competitive pressure that they are facing. They are basically going ahead with winning contracts and that is where the volume based gain this company has adopted. So it is an interesting strategy.

The company has been moving firmly in this kind of an environment and suggesting that the growth is in store for them. So, it would demand add into the portfolio within the crowded space of IT where the headroom is less. HCL Tech possibly is suggesting that you could have around 20% kind of an upside going forward over next 12 months.