Buy HCL Infosystems; target of Rs 140: Justtrade.in

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Buy HCL Infosystems; target of Rs 140: Justtrade.in

Justtrade.in is bullish on HCL Infosystems and has recommended buy rating on the stock with a target of Rs 140 in its August 31, 2010 research report.

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Justtrade.in is bullish on HCL Infosystems and has recommended buy rating on the stock with a target of Rs 140 in its August 31, 2010 research report.

"HCL Infosystems (HCLI) PC-Notebook sales are expected to grow at 18% compared to an Industry average of 9%. Consumer electronics business is expected to grow at 40% per annum for the next 3 years. SI business has an order book of Rs 2200 crore. Nokia sales are expected to recover because of the 3G services launch. NTS group acquisition is EPS accretive adding ~1%- 1.5% to company's profits. There would be additional revenues from new streams like gaming, ATMs, TPDS & India's 2010-11 census. Healthy cash accruals and low debt repayment obligations will help the company to perform better in coming quarters. HCLI, an Rs 2459.6 crore company by market capitalization, is currently trading at a share price of Rs 112.75."

"HCL Infosystems has an attractive dividend yield of 6.7% based on the current price and a dividend of 375% given in FY10. The current EPS is Rs 11.1 which translates into a P/E of 10.1. In terms of price to book value, it is available at 1.3. The market cap to sales ratio is 0.2. Given the growth prospects of the company, the stock is an attractive buy. We recommend a "BUY" on the stock with an investment horizon of 12 months and target price of Rs 140," says Justtrade.in research report.

Disclaimer: The views and investment tips expressed by investment experts 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 on the attachment