Buy HCL Tech; target of Rs 934: Axis Securities

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26 Aug, 2025 12:21

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Axis Securities's research report on HCL TechHCLT's revenue growth missed estimate, however deal wins (USD 2bn) in Q3were impressive vs. earlier run-rate of USD 1 bn per quarter. Growth in IMS (up ~3.9% QoQ), deeper client mining (USD 40/USD 100 mn clients increased by 3/1), higher utilization (up 90 bps QoQ) and USD 2 bn deal winslend confidence on pick-up in growth momentum. Margin levers exist (automation, utilization, offshore shift). CY16outlook: Management shared CY16 IT spends to grow at 4% YoY (CC terms) with growth being driven by digitization, Internet of Things and next generation ITO^. Given the strong deal wins, HCLT expects H2 to be strong and will focus on user experience, customer satisfaction, lean& agile structure, and collaboration with eco system to drive growth. Clients are focusing on vendor consolidation, cost reduction and increasing adoption of outcome-based models. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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