Buy HCL Tech on every decline: PN Vijay

PN Vijay, Portfolio Manager, askpnvijay.com advises to buy HCL Tech on every decline.

Vijay told CNBC-TV18, “One should add HCL Tech in their portfolio. It is vey interesting if you looked at the earnings before interest and taxes (EBIT) and earnings before interest, tax, depreciation, and amortisation (EBITDA) over the last eight or 10 quarters. There was a huge difference in EBITDA between HCL Tech and Infosys, almost an 8-10 percent difference and today they are neck-and-neck.”
He further added, “They are plus 20 percent and what they have done is right from the beginning unlike Infosys and Tata Consultancy Services (TCS). HCL Tech does not concentrate just on the Banking, Financial Services and Insurance (BFSI) vertical. They have distributed themselves into industry in a big way where it is not really discretionary spend, but non-discretionary spends. So HCL Tech, the results have been good. There have been a little bit of selling the result, but I would continue to argue that it is a buy on every decline.”