05 October 2011

Conviction BUY HCL Tech:: Goldman Sachs Top Pick: October 2011


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HCL Technologies: Discount to peers accentuated on Director’s Cut
> Valuations are at a discount to its historical average and peers on 1-year forward P/E
> While returns expand, we expect to see discount to sector narrowing
RIM/EAS services to contribute a greater part of HCLT revenues RIM..s gtereewl v aotl u9m%e sse tqou gernotiwal alyt f4o1r% th teh rpeaes-ty e2a qru CaArtGerRs
> 12-m target price of Rs501 based on Director’s Cut implies FY13E P/E of 11.8X vs. large cap avg. of 15.0X



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TOP PICKS:: Goldman Sachs India Handbook: October 2011

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