HCL Technologies can touch Rs 450: Sanjay Vaid

HCL Technologies can touch Rs 450, says Sanjay Vaid, Sr Vice President and Co-Head of Equities, SBI Cap.

Vaid told CNBC-TV18, "HCL Technologies has underperformed on one month and 6 months basis, some correction we have seen in the stock. The stock per se has seen some delay in the decision making at the international level also but has not seen any cancellation of any of its projects. The topline revenue growth of this stock has been better than the peers. If you see the last 4 quarters the revenues have grown at a CAG of around 6.9% which is much better than Infosys. Despite these facts the stock is trading at almost 35% discount to TCS and 25% discount to Infosys."
He further added, "We feel that the consistent performance of the stock could help it narrow down the valuation gap and could head towards Rs 450 level in medium term or at least 12 to 18 months level. However, on the shorter term front if you see there has been some selling pressure in the stock. The OIE had gone up by almost 9% over the weekend and with some selling pressure happening in the stock."
"I personally feel that this stock could easily outperform and could be the best pick among the top 4 in the IT segment. In case one wants to exit then I think again for that probably if he/she waits for some more time and maybe looks at the results for Q2, maybe which is 15-20 days down the line, it could give some fillip to the stock and in that rally probably one can exit the stock."