HomeNewsBusinessStocksBuy HCL Technologies: target of Rs 1200: Sharekhan

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 January 05, 2021.

January 14, 2021 / 20:54 IST
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Sharekhan's research report on HCL Technologies

COVID-19 has catalysed demand for cloud transformation, intelligent workspaces and cybersecurity, which present huge opportunities. USD revenue growth seen at 3.1% q-o-q and 2.7% q-o-q in constant currency terms in Q3FY2021, ahead of its growth guidance of 1.5-2.5%; margins to decline 40 bps q-o-q on partial wage revisions. Strong order bookings, healthy deal pipeline and consolidation opportunities in both IMS and application modernisation would drive growth going ahead.

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Outlook

We maintain a Buy on HCL Technologies with a revised PT of Rs. 1200 as stock trades at a discount to Wipro despite a better growth profile in past few years.