HCL Technologies has target of Rs 750: JM Financial

HCL Technologies has target of Rs 750, says Govind Agarwal, Senior Analyst - IT Sector at JM Financial.

Agarwal told CNBC-TV18, "We expect all the IT names to give absolute returns over the next six-nine months. We have a buy rating on Infosys, TCS, HCL Tech, Tech Mahindra, Mahindra Satyam; all the names are buy rated right now and we are also positive going into the quarter."
He further added, "Our price target is Rs 750 for HCL Tech. It is a much lower valuation than Infosys and TCS and given the uptick in discretionary spending for FY14, we expect multiples to increase for both TCS and Infosys and even without the valuation gap reducing for HCL, the multiple for HCL should improve from here. We expect multiple discount of HCL to reduce vis-à-vis Infosys and TCS."