Multiple drivers to sustain growth
Analysts View on HCL Technologies -
HCL Technologies is well placed to cash in on this trend, not only because of its aggressive pricing but also its strong service offerings. Over the last few weeks, several brokerages have upgraded the stock. Analysts say the company has revenue visibility till 2014, thanks to large multi-year deals signed since 2008. According to Avendus Securities, “The large multi–year deals worth $6.5 billion signed between FY08 and FY11 are likely to provide HCL Technologies a steady revenue run-rate over the next three years. The company derives 25 per cent of its revenues from infrastructure management services (IMS), which is the fastest growing service line. Given the low penetration of global sourcing of IMS (at just 2.4 per cent) and HCL Tech’s leadership position in this service line, we believe the company is well–poised to benefit from the estimated growth potential in IMS.