ICICI Direct has given Buy recommendation for HCL Technologies with a target price of Rs. 1110 in its research report issued on Apr 24, 2021
ICICI Direct’s research report on HCL Technologies
HCL Tech’s results were below our expectations. However, the company won 19 transformational deals across industry verticals. New deal TCV in this quarter increased 49% YoY at US$3.1 billion and 18% YoY to US$7.3 billion in FY21. Further, in terms of guidance, HCL expects to grow in double digits in constant currency for FY22E and expects EBIT margin to be between 19.0% and 21.0% for FY22E. The company has declared a dividend of Rs 6/share. Also, the board has declared a special dividend of Rs 10/share.
Hence, we maintain BUY on the stock with a target price of Rs 1,110 (18x PE on FY23E EPS) (earlier target price Rs 1150).