HCL Tech (HCLT) closed 1.5% higher yesterday on 1.2x its 2- week average volumes. We remain positive on HCLT based on continuity in strong deal bookings (US$1bn quarterly rate of TCV) & strong re-bid pipeline, lower growth skew of infrastructure
services as application services and engineering services accelerate.
HCLT has charted its growth strategy around investments in co-innovation, expansion of delivery centers to enable end-to-end support and hiring of technical architects for IoT and digital.
Growth strategy for financial-services vertical is hinged around co-innovation and greater digital focus. We expect US$ revenue/EPS to grow at 13.6%/11.6% CAGR over FY15E-17E.
We have a Buy on the stock with target of Rs.1,075.
No comments:
Post a Comment