Religare Institutional Research has maintained 'Buy' on HCL Technology with target price of Rs 1,600 in its report.
Commenting on the investment rationale, the stock broker said, "HCL Tech USD revenues came in line with estimates (3% QoQ) but operating margins higher led by G&A savings. While IMS continues to be the growth driver (5% QoQ CC), Applications services also saw recovery in growth (2.9% QoQ CC). We tweak our EPS estimates to factor in a stronger rupee. While HCL Tech's strong IMS practice should continue to drive growth, we see limited upside risk to margins which could restrict earnings upgrades.
Overall, Q4 was in-line quarter for HCLT with continued growth in infrastructure services. We adjust our FY15/FY16 EPS estimates by 0.5%/-0.6% to factor in a stronger INR (USD/INR rate of 60.5/60 for FY15/FY16)."
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