Accumulate HCL Technologies; target of Rs 1383: Religare Retail Research

Religare Retail Research recommended accumulate rating on HCL Technologies with a target price of Rs 1383 in its research report dated October 13 2023.

Broker Research

October 13, 2023 / 14:34 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Religare Retail Research report on HCL Technologies

HCL Tech posted steady Q2FY24 revenue but it was below our expectation. Rupee revenue came in at Rs 26,672cr, higher by 1.4% QoQ and 8% YoY while dollar revenue grew by 0.8% QoQ and 4.6% YoY to USD 3,225mn. In constant currency, revenue was higher by 1% QoQ and 3.4% YoY. Overall all business segments, geographies and majorities of vertical growth were stable. Amongst geographies, both American and Europe region contributed while for verticals except for technology & telecommunication & media, all others including financials, manufacturing, retail and life-science contributed to the revenue growth. Besides, amongst the business segment both its service (~90% of revenue) & software (~10% of revenue) business grew by 7.4% YoY and 14.1% YoY, respectively

Outlook

However, we are expecting FY25 to be much better than FY24, thus incorporating revenue cut in FY24 as per management guidance and better growth in FY25, our estimated revenue/EBIT is estimated to grow by 8.6%/12.9% over FY23-25E. Also, our rating is revised to Accumulate from Buy earlier and so our target price upwards to Rs 1,383, valuing the company at 19x P/E of FY25E EPS.

For all recommendations report, click here