Moneycontrol
Last Updated : Feb 07, 2019 03:13 PM IST | Source: Moneycontrol.com

Buy HCL Technologies; target of Rs 1260: HDFC Securities

HDFC Securities is bullish on HCL Technologies has recommended buy rating on the stock with a target price of Rs 1260 in its research report dated January 30, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on HCL Technologies


HCL Tech (HCLT) posted robust revenue performance (10-qtr high QoQ) driven by strong uptick in IMS. Revenue came at USD 2,201mn, +5.6/13.0% QoQ/YoY CC, led by IMS (37.5% of rev) posting +10.4% QoQ CC on ramp-up of large deals. Revenue guidance was increased to top-end of 9.5 to 11.5% YoY band (at mid-point earlier) led by traction in organic business. EBIT% stood at 19.7%, -30bps QoQ on wage increase impact. APAT stood at Rs 26.11bn, 2.8/19.0% QoQ/YoY impacted by lower other income (forex loss of Rs 0.54bn), offset by lower ETR.


Outlook


Expect rev/EPS CAGR of 13/10% over FY19-21E factoring USD rev growth at 16.2/10.1% and EBIT% at 20.3/19.7% for FY20/21E, respectively. Valuations attractive at 11.7x FY20E, maintain BUY with TP of Rs 1,260, 14x-Dec-20E EPS.


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.

First Published on Feb 7, 2019 03:13 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant