Prabhudas Lilladher positive on HCL Tech

Shashi Bhusan, IT Analyst, Prabhudas Lilladher is positive on HCL Tech and Infosys.

Bhusan told CNBC-TV18, "We continue to remain bullish on the overall demand environment of IT companies. For the largecap we are positive on HCL Tech and Infosys. We expect them to outperform some of the larger peers. Largely, HCL Tech continues to gain share along with the margin expansion story. Also the financial health of the company is improving. Their free cash flow to EBITDA ratio has been improving over the last 2 quarter."
He further added, "We expect that trend to continue for atleast next quarter and then again we will enter into wage cycle and we expect the margin to take a dip; however, we expect them to deliver industry leading growth atleast in the top quartile compared to both Indian and global peers like Cognizant, Accenture and Capgemini."