HCL Technologies is a top pick in IT space, says Ashwin Mehta, IT Analyst at Nomura India.
Mehta told CNBC-TV18, "HCL Technologies has been our top pick within the sector. Our target price on the stock is Rs 630. Assuming that no major re-rating of the stock happens, so multiples are around 13 times FY14 earnings and that gives 23% upside from current levels."
He further added, "I think one key parameter to watch there which is client mining, has shown a positive progression in this quarter and if the sustains some of the investor concerns, which have been there in terms of either revenue outperformance or margin sustainability or cash conversion will fade and that could lead to further re-rating in our view."
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