Geojit has given Buy recommendation for HCL Technologies with a target price of Rs. 1409 in its research report issued on Jan 18, 2022

Geojit’s research report on HCL Technologies

HCL Technologies Ltd. provides software development business process outsourcing, information technology and infrastructure services. Company is spread across 52 countries with 197,000+ employees and its client base, including 250 of the fortune 500 companies and 650 of Global 2000. Consolidated revenue grew 15.7% YoY (+8.1% QoQ), fueled by strong demand momentum. This was the highest growth recorded in the last 47 quarters exceeding the management’s expectations. EBITDA was down by 4.1% YoY (+7.4% QoQ) mainly due to higher Employee benefit expenses (+24.9% YoY). As a result, PAT declined 13.3% YoY (+5.6% QoQ), further impacted by higher taxes.

Outlook

While margins remained under pressure, we maintain a positive long-term outlook considering strong pipeline and continued demand growth momentum and hereby reiterate our BUY rating on the stock with a rolled forward TP of Rs. 1,409 based on 22x FY24E adj. EPS.

More Info on Trent

At 16:00 hrs HCL Technologies was quoting at Rs 1,123.05, down Rs 44.80, or 3.84 percent.

It has touched an intraday high of Rs 1,166.00 and an intraday low of Rs 1,111.00.

It was trading with volumes of 312,524 shares, compared to its thirty day average of 274,443 shares, an increase of 13.88 percent.

In the previous trading session, the share closed down 0.66 percent or Rs 7.70 at Rs 1,167.85.

The share touched its 52-week high Rs 1,377.00 and 52-week low Rs 890.00 on 24 September, 2021 and 24 February, 2021, respectively.

Currently, it is trading 18.44 percent below its 52-week high and 26.19 percent above its 52-week low.

Market capitalisation stands at Rs 304,758.16 crore.

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