HCL Technologies Ltd - Another well rounded performance - Emkay

Reco: ACCUMULATE
CMP: Rs 1391
Target Price: Rs 1550

- Dec'13 quarter was another well rounded performance with HCL Tech alleviating investor concerns somewhat through more balanced and diversified revenue performance

- Core Software growth picked up to 2.5% QoQ( V/s <1% for the past 6 quarters) with strong performance continuing in Infra business(+6% QoQ). Qtrly dividend raised to Rs4/share

- Deal win momentum continues with company announcing ~15 deals with TCV of US$ 1bn + spread more evenly across all service lines

- Raise FY14/15/16E EPS by 10/7% to Rs 85/96. Raise TP to Rs 1,550 (V/s Rs 1,260 earlier) based on 14x FY16 P/E. 'Well rounded' performance warrants a case for P/E rerating ahead

Source : Equity Bulls

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