HCL Technologies (HCLT) held its analyst meet to articulate its three mode strategy for building a 21st century enterprise. The management expects opportunities and deal win in Mode 1, especially in IMS & Engineered Services to sustain growth rate whereas demand for Mode 2 services is at an inflection point, which can accelerate and potentially grow 20-30% for coming years. In Mode 3, it will have modest expectations and would pursue selected opportunities. In terms of FY17 guidance, the company maintained its revenues growth guidance of 12- 14% in CC terms (11.2-13.2% in dollar terms) with EBIT margin band of 19.5-20.5%.

Valuation: The stock is currently trading at attractive valuation of 12.6x FY18E along with attractive dividend yield (~3%). They maintain BUY recommendation with a target price of | 950 (15x FY18 EPS).