ICICI Direct's research report on HCL Technologies
HCL Technologies (HCL) reported healthy margins in Q3FY21 and were above our estimates. The company has also revised its margins guidance upwards from 20-21% in FY21E to 21-21.5%. Revenues were in line with our estimate at 3.5% QoQ in CC terms, while margins were above our estimates. HCL has signed 13 transformational deals across industry verticals, including Life Sciences and Healthcare, Technology and Financial Services. The company has declared a dividend of Rs 4/share.
Outlook
Hence we maintain BUY on the stock with a target price of Rs 1150 (18x PE on FY23E EPS) (previous target was Rs 1105).
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