Target for HCL Technologies Rs 445: Pankaj Pandey, ICICI Direct

ET Now spoke to Pankaj Pandey, Head of Research, ICICI Direct, on his view on HCL Technologies.

A big kicker coming in for HCL Technologies but obviously this is over a period of seven years. The outlook, does it change for the near term?

Difficult to comment or it will be too premature to comment in terms of specifics but actually we have a target price of about Rs 445 and we like this stock with the kind of volume growth completely delivered in last quarter in terms of double digit volume growth.

Going forward if you look at it in terms of topline growth, we are expecting about 20% kind of a topline growth and about 32% kind of a bottomline growth and if you look at among tier 1 companies, this company is available at about 13 times FY12 basis compared to some of the larger players like Infosys and TCS, which are trading at about 22-23 times.

So in that sense, if this company is available at a substantial discount and in terms of tier 1 companies, preference would go towards this company and in addition to that, TCS is one, which is also looking quite decent in terms of the growth going forward.