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HCL Technologies (HCLT.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
Management appears to be extremely confident of its order book and pipeline until the December 2011 quarter. HCLT has
won large deals in the past that provide it with strong visibility for the next 3-4 months. Further, management indicated that
there would be a large number of deals coming up for renegotiation in 2HCY11, and HCLT remains well placed to win
some of those deals. The rupee has depreciated against the US$ by 6% over last month. We believe management
assumptions of flat margins yoy in FY13e could turn out to be conservative in a depreciating rupee environment.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: In-Line
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
HCL Technologies (HCLT.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
Management appears to be extremely confident of its order book and pipeline until the December 2011 quarter. HCLT has
won large deals in the past that provide it with strong visibility for the next 3-4 months. Further, management indicated that
there would be a large number of deals coming up for renegotiation in 2HCY11, and HCLT remains well placed to win
some of those deals. The rupee has depreciated against the US$ by 6% over last month. We believe management
assumptions of flat margins yoy in FY13e could turn out to be conservative in a depreciating rupee environment.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: In-Line
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