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Last Updated : Aug 03, 2020 10:42 AM IST | Source: Moneycontrol.com

HCL Tech share price at 52-week high on reports of Ericsson deal win

The company has not said anything, so far, and the BSE has sought clarification from the company on media reports.

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HCL Technologies share price climbed almost 2 percent to hit a 52-week high of Rs 717.95 in the morning trade on BSE on August 3.

The stock has been buzzing amid media reports that the company had won an over $600-million deal from Ericsson.

However, the company has not said anything and the BSE has sought clarification from the company.


The company on July 17 reported a 7.3 percent quarter-on-quarter (QoQ) fall in its June quarter net profit at Rs 2,925 crore, following which the stock closed with a mild loss of 0.67 percent on BSE.

However, the results did not disappoint global brokerage firm CLSA, which maintained a 'buy' call on the stock and raised the target price by 13.85 percent to Rs 740 from Rs 650.

As per CNBC-TV18, CLSA is of the view that the company's results underscored its strong margin defence.

"Higher exposure to run-the-business spend leading to a faster recovery. We raise FY21 and FY22 EPS estimates by 4 percent and 6 percent, respectively.

Domestic brokerage firm Motilal Oswal Financial Services, too, has maintained a 'buy' call on the stock with a target price of Rs 765.

"We upgrade our FY21/FY22E EPS by 12–14 percent and maintain a 'buy', as we expect HCL Tech to better navigate the current crisis and emerge stronger on the back of an expected increase in enterprise demand for digital services," said Motilal Oswal.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 3, 2020 10:42 am