Accumulate HCL Tech; target of Rs 1070: P Lilladher

Brokerage house Prabhudas Lilladher is bullish on HCL Technologies and has recommended 'Accumulate' rating on the stock with a target price of Rs 1070, in its research report dated July 14, 2015.

July 15, 2015 / 15:19 IST

26 Aug, 2025 12:21

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Prabhudas Lilladher's report on HCL Technologies

HCL Tech (HCLT) has entered into a definitive asset purchase agreement to acquire certain assets of Trygstad Technical Services Inc. ("TrygTech") in an all cash deal. The financial details of the transaction were not disclosed. TrygTech is a niche company with expertise in the areas of core engineering (including operating system), Internet of Things, Embedded Systems and Intelligent Systems. With this acquisition, HCLT enhances its ability to provide additional value and turnkey solutions to ecosystems of ISVs. We see this acquisition to have limited impact on the financials of HCLT.

Headquartered in Washington (the USA), TryTech was founded in 2002. The company did not reveal what assets were purchased or the deal size, but called it a strategic acquisition. According to media reports, TrygTech has employee strength of less than ~400 employees and is believed to have revenue of sub US$4mn. We expect deal to be valued at less than 1.5x Sales.

Valuation & Recommendation – Retain Accumulate with a TP of Rs 1070: HCL Tech is one of the largest Engineering Services vendors in India. The acquisition will strengthen its capabilities, but see limited financial impact of the same, says Prabhudas Lilladher research report.

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