Dolat Capital is bullish on HCL Technologies and has recommended accumulate rating on the stock with a target of Rs 1750 in its July 31, 2014 research report.
"HCL Technologies, we believe the constant currency growth of 3% CQGR for over last 6 quarters along with regular multi bn$ TCV additions on quarterly basis indicate sustained momentum at HCLT. More importantly the current quarter has witnessed strong growth in BPO and at par performance of other services segment, which adds to the confidence of sustained performance going forward. We maintain our Marketperformer stance on the stock with a TP of Rs 1750 valued at 15x FY16E earnings."
"Management has indicated several initiatives (offerings – Cloud, Engg Outsourcing, Digital, eFaas) that would drive its traction across service lines and expects to gain from strong pipeline for addressable rebid deals estimated at $25bn for FY15 which has been the area of success for HCL in past. It does not see any risk of slowdown in the IMS segment that has grown 33% YY in FY14 with several critical and mega deal additions as it remain confident on its strong positioning/capabilities and would thus continue to provide momentum to its revenues in foreseeable future. Recovery in the BPO segment with 21% revenue growth for FY14 with 23 new client additions (over last 6 quarters - few of them in Fortune 500/G2000 clients) would provide the much needed support and broad base to the total business growth. It has seen strong 440bps+ gains on OPM on LTM basis through utilization gains, improved business mix, G&A rationalization (cost up just 2% YY basis in FY14), recovery in the BPO and Fx leverage. It continue to remain confident on maintaining OPM in 20-23% band going forward even for small adverse Fx movement (23bps sensitivity on 1% Fx movement) which we believe would remain the crucial determinant for sustenance of its valuation at current levels."
"We expect revenue growth momentum as we gain confidence from broad basing of its growth beyond IMS to BPO and ADM. The strong deal TCV and client additions further support our belief on sustenance of financial outperformance. We have build in a Revenue/EPS CAGR of 14/13% over FY14-16E and maintain Marketperformer rating on the stock given its historic high valuations of 15.6x TMF earnings which fairly discount the growth and OPM performance. We retain our Accumulate rating with a target price of Rs 1750 (valued at 15x of its FY16E," says Dolat Capital research report.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Anda sedang membaca artikel tentang
Accumulate HCL Tech; target of Rs 1750: Dolat Capital
Dengan url
http://harmonisem.blogspot.com/2014/08/accumulate-hcl-tech-target-of-rs-1750.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Accumulate HCL Tech; target of Rs 1750: Dolat Capital
namun jangan lupa untuk meletakkan link
Accumulate HCL Tech; target of Rs 1750: Dolat Capital
sebagai sumbernya
0 komentar:
Posting Komentar