HCL Technologies' key sector pick; target Rs 900: Stanchart

Moneycontrol Bureau

Brokerage house Standard Chartered Securities has rated HCL Technologies' as its key pick in the IT sector, and raised price target to Rs 900 from Rs 800.
"Our 18 percent FY13-15 USD revenue CAGR forecast (above consensus) is achievable; HCL highlighted growing deal TCV (total contract value) pipeline with a jump in size of deals coming to it," said the Standard Chartered note to clients.
"We also sense high comfort on margin defence with EBIT margin stable in 18-19 percent range; sustained revenue momentum + margin defence could lift valuations, in our view," the note added.
The brokerage is bullish on frontline IT companies as it feels the sector will outperform in an environment as macro-economic problems leave investors with a limited choice on sectors to invest in.