Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More

Buy HCL Technologies: target of Rs 1200: Sharekhan

Sharekhan is bullish on HCL Technologies has recommended buy rating on the stock with a target price of Rs 1200 in its research report dated April 23, 2021.

April 27, 2021 / 12:32 PM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on HCL Technologies


Q4 numbers missed headline estimates; but deal bookings, employee additions and healthy cash generation remained impressive; EBIT margins shrunk by 260 bps q-o-q owing to a wage hike and a seasonal decline in the product business. The management guided for a double-digit revenue growth on CC terms (versus our estimates of 10-12%) and OPM of 19-21% (versus our expectations of 20-21%). Margin likely to be affected owing to investments in geographies, capabilities and talents. Expect strong double-digit revenue growth in FY2022 despite lower growth in product business, driven by robust deal wins, deal pipeline and rising spends on transformation initiatives by clients.



Outlook


We maintain a Buy rating on HCL Technologies with a revised PT of Rs. 1,200, given clients’ rising spends on Cloud-related technologies and reasonable valuations.


For all recommendations report, 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.

Broker Research
first published: Apr 27, 2021 12:32 pm

stay updated

Get Daily News on your Browser
Sections