HCL Technologies - Keeps the faith with solid execution - Emkay

Reco: ACCUMULATE
CMP: Rs 514
Target Price: Rs 585

- June'12 qtr show near flawness on every front- A 3% US$ rev growth (+4.6% in c.c terms) and margins improving by ~360 bps sequentially , highest since Sep'09 levels

- Operating metrics performance robust with top 5/10/20 clients growing higher than co average for 3 quarters in a row, unlike in the past aiding some SG&A leverage.

- Strong performance in Europe continues. Amongst verticals, Healthcare drove ~2/3rd of incremental revenues during June'12 qtr.

- Tweak FY13/14E EPS higher by 8.5/3.7% to Rs 41.4/44.9 as we build in better margins ahead despite slight moderation in revenue estimates. Retain ACCUMULATE, TP Rs 585.

Source : Equity Bulls

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