Sharmila Joshi of Peerless Securities told CNBC-TV18, "One can buy HCL Technologies if markets open on a very positive note on Monday and IT bidding on the gains. Otherwise it is better to wait for somewhere closer to Infosys numbers (that will announce Q1 earnings on Friday) or some of the other major IT numbers. The reason why I like the stock is the kind of earnings per share (EPS) growth that we have seen."
"Also the rupee depreciation seems to have shown in a favourable way only in the numbers of HCL Technologies. So, immediately one may see that one percent drop in the rupee getting reflected directly in their EBITDA margin. That is one of the key reasons for liking HCL Technologies over some of the other stocks at this point in time," she added.
Joshi further said, "In terms of valuation, it looks better plays than Tata Consultancy Services (TCS) or Infosys for that matter at the current moment. So I would go into the stock with a target of about Rs 880-900, but I would like to buy it below Rs 800. So I would wait for it to correct a little bit more from here and then look to enter HCL Technologies." Also Read: Johnson & Johnson launches $1bn outsourcing contract
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