Prabhudas Lilladher says HCL Tech to outperform ahead

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Prabhudas Lilladher says HCL Tech to outperform ahead

In an interview with CNBC-TV18, Amisha Vora of Prabhudas Lilladher spoke about her reading of the markets and recent HCL Tech numbers.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets HCL Tech BSE | NSE 29/05/12 Are Mutual Funds betting on HCL Tech?

In an interview with CNBC-TV18, Amisha Vora of Prabhudas Lilladher spoke about her reading of the markets and recent HCL Tech numbers.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Is the market beginning to stall?

A: It appears so. A good rally is probably behind us and we are going to see, apart from whatever some flew flips on the results, a slightly dull quarter going ahead as far as quite a few sectors are concerned, which is cyclical maybe, but yes that is what is expected-maybe cement, metals, real estate, construction-all will see a slight slowdown.

On the other hand, we will see how we are trying to adjust to a slightly tighter liquidity situation maybe after a gap of almost 4-5 quarters where banks are trying to now once again find liquidity through raising deposit rates. How the whole adjustment cycle plays out, it is better to first see that instead of probably jumping at 5,400 levels in the markets.

Q: Any thoughts on HCL and Hexaware?

A: HCL Technologies continues to look good but not quite sure on Hexaware. I don't look at it very closely but within the sector also, this time in IT, there have been a few winners and there have been a few subdued results. So a lot of contradiction, but yes, both these-TCS and HCL-continue to look good.

Q: You see HCL Technologies moving higher from this level of Rs 372?

A: It looks very much a possibility.

Q: How does HCL Technologies stack up relative its peers after the results that you have seen?

A: I think two important facts to note-apart from a good volume growth, the margin decline also has been very moderate. But the employee addition is one of the strongest it appears which also suggest that going forward the traction in business is supposed to be or going to be pretty high.

Within the pack of Infosys, TCS, Wipro, HCL Technologies-this [HCL Tech] will find a slightly favourable place and the outperformance will continue.