Strong technical advantages in its segment of operations, continuing engagements with high-value clientele with big technology spends and bright prospects for new business segments give Tulip IT an edge in the domestic market. At the current market price of Rs 1030, the stock trades at around 10.6x and 9.1x of its FY10E and FY11E earnings which is quite attractive. So, we recommend to Buy this stock with a price target of Rs 1375 (12.5x of FY11E earnings) with a one year time horizon.
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