HCL Technologies Ltd.

May 16, 2016 . Equities Desk

Incorporated in 1991, HCL Technologies is engaged in providing a range of software, business process outsourcing and IT infrastructure services. The company provides technology service across various verticals including financial services,  anufacturing (automotive, aerospace, hitech and semiconductors), telecom, retail and consumer packaged goods services. Geographically, the company has diverse presence across 32 countries including Americas, Europe, Asia Pacific, Middle East and Africa. Its global strategic alliances have some reputed names that includes Microsoft, Cisco, SAP, HP, etc. It has a strong workforce of more than 104,000 employees.

Valuation and View

Sustained momentum in large deal coupled with its competence in the IMS and ER&D space, will aid growth and provides scalability to its business. We expect revenue and Adj. PAT to grow at a CAGR of ~31% and ~22% over FY16-18E. We initiate coverage on the stock with a BUY rating with a target price of Rs. 828 (based on FY18E P/E of 14x), implies a potential upside of ~15% over the next 1 year.

Research Report HCL Technologies Ltd

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