Management commentary holds the key for HCL Tech: Deven Choksey

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

ET Now: What is going on? If the quarterly numbers are good, markets are not recognising them. But if numbers are poor, stocks are getting completely smashed?

Deven Choksey: Are you talking about Tata Motors?

ET Now: No, HCL Technologies.

Deven Choksey: The Q2FY16 numbers were good; there was nothing wrong with the numbers. Yet, just look at the stock market reaction? Deven Choksey: Well, I am not too sure. That is why I would like to wait and read the commentary of the management, before making any judgmental call.

But on face of it, the numbers are definitely looking nice. I definitely would like to think that the stock is probably likely to perform well in coming quarters. I would like to understand from management as to what kind of further growth potential that it is seeing in the ongoing environment. Infosys and TCS have definitely given a good path and clarity. Whether a similar thing would come from HCL Technologies is to be seen. If that does so, then you should be seeing a larger allocation of funds coming into this particular stock. But for some reason if the management fails to convince investors on this subject, then maybe the money would remain with TCS and Infosys for the time being.