CLSA rates HCL Technologies as top pick in IT space
Mumbai: CLSA has maintained 'buy' on HCL Technologies and rated it as its top pick in the information technology space, citing strong growth prospects.
"With strong growth prospects, potential for value creation from the IP business & an attractive valuation for HCLT it is our top pick in the sector," said CLSA. The brokerage has a target price of Rs 1,170 on the stock.
Th brokerage said its investment thesis on HCL Technologies depends on maintainence of 10% plus revenue growth and a 'flattish' Ebit margin profile.
The brokerage said its meeting with the company's CEO C Vijayakumar reaffirmed its confidence in the company achieving its expectations.
"CVK (C Vijayakumar) is attempting to build HCLT into a next generation IT services business by creating new practice groups, consolidating different capabilities and a client partner network," said CLSA.
"Its 150 strong client partner network focuses on its largest customers (70% of revenue) which has driven stronger cross selling of new capabilities. This has improved win rates for new deals, and improved market share gains in non-infrastructure areas from Tier 1 peers & niche consulting firms," it added.
"With strong growth prospects, potential for value creation from the IP business & an attractive valuation for HCLT it is our top pick in the sector," said CLSA. The brokerage has a target price of Rs 1,170 on the stock.
Th brokerage said its investment thesis on HCL Technologies depends on maintainence of 10% plus revenue growth and a 'flattish' Ebit margin profile.
The brokerage said its meeting with the company's CEO C Vijayakumar reaffirmed its confidence in the company achieving its expectations.
"CVK (C Vijayakumar) is attempting to build HCLT into a next generation IT services business by creating new practice groups, consolidating different capabilities and a client partner network," said CLSA.
"Its 150 strong client partner network focuses on its largest customers (70% of revenue) which has driven stronger cross selling of new capabilities. This has improved win rates for new deals, and improved market share gains in non-infrastructure areas from Tier 1 peers & niche consulting firms," it added.