Sharekhan's research report on HCL Technologies
Q1FY2023 revenue growth was in line with expectations with steady progression of clients across higher size buckets. Margins missed estimates owing to supply-side pressures. Cash generation, net staff addition and attrition rate remained weak. The management reiterated its revenue growth guidance of 12-14% on CC terms, in line with our expectations, and 18-20% for EBIT margin for FY2023 despite supply side pressures, and delay in hike in realisations. HCL Tech is expected to achieve its revenue growth guidance in FY2023E given its strength in digital foundation, unique integrated infrastructure and app services, and presence in the fast-growing ERD segment.
Outlook
We maintain a Buy on HCL Technologies with a revised PT of Rs. 1,140, given strong growth in application services, good dividend payout, healthy order intake and reasonable valuation.
More Info
At 11:21 hrs HCL Technologies was quoting at Rs 920.30, down Rs 7.75, or 0.84 percent.
It has touched an intraday high of Rs 931.00 and an intraday low of Rs 905.20.
It was trading with volumes of 253,037 shares, compared to its thirty day average of 125,940 shares, an increase of 100.92 percent.
In the previous trading session, the share closed down 1.63 percent or Rs 15.35 at Rs 928.05.
The share touched its 52-week high Rs 1,377.00 and 52-week low Rs 925.00 on 24 September, 2021 and 12 July, 2022, respectively.
Currently, it is trading 33.17 percent below its 52-week high and 0.51 percent above its 52-week low.
Market capitalisation stands at Rs 249,738.60 crore.
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