Ankur Rudra, vice president of institutional equities of Ambit Capital told CNBC-TV18, "HCL Technologies is our top buy idea. It is among the few tier-I IT names which still has an upward re-rating potential. It trades at about 12 times - the firm has shown very strong margin recovery over the last two years, thanks to an improvement in its quality of business. It has been able to enter several large fortune 500, global 2000 accounts which have helped it expand its margins."
"There is a bit of a concern amongst investors that a lot of growth is coming only from one service like infrastructure management. We think that probably will change over the next 12-18 months. So, we think the earnings upgrade is still there for HCL Tech which hasn't come through and also the possibility for growing revenues and hence earnings that are relatively strong make us a buyer on the stock," Rudra said.
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