Buy HCL Tech; target of Rs 900: Joshi

Sharmila Joshi, Head of Equity, Peerless Securities Ltd. is of the view that one can buy HCL Technologies with a target of Rs 900.

Joshi told CNBC-TV18, “HCL Technologies gave a greater degree of confidence than the Infosys numbers gave us. So yes, we can wait for TCS numbers because there is no denying that if there is a stock within the IT space which is leading then it is TCS. But just by that argument, perhaps in terms of price appreciation, you could expect a better appreciation in HCL Tech, the numbers were good, they beat street estimates. If you were to look forward and look at what they could do in this year, then you are looking at an EPS in that Rs 60 plus kind of range.”
She further added, “If the stock were to say get valued at 15 times, then you could be looking at a target of about Rs 900. So I would say that post today’s numbers, I think the kind of level that I would see HCL Tech go to would be in Rs 900-1,200 kind of range with Rs 1,200 being an absolutely bullish outlook where you are discounting the stock 20 times. So somewhere in that range is what I think the stock would trade at going forward. Yes, I think it’s a good stock to buy within the IT space and yes IT space is a space that I would like for the coming year.”
“Definitely, let’s wait and see what TCS says because there would be some commentary about the outlook for FY14 and that could kind of influence stock prices. So wait for a day or two but given the kind of performance HCL Tech has given today, I think for me, it’s a buy.”