Buy HCL Technologies; target of Rs 1300: Edelweiss

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Edelweiss' research report on HCL Technologies

While HCL Technologies (HCLT) posted Q1FY19 revenue and operating margin growth of 0.8% (in USD) and 19.8% (lower than Street’s 2.0% and 19.9%) respectively, management commentary on demand environment is extremely bullish. The company signed a robust number of 27 new transformational deals during the quarter (15 in Q4FY18), calling out the highest-ever deal bookings. In fact, the deal bookings are significantly better than the previous high and are in line with our most bullish stance. HCLT also benefited from wins in large next-gen infrastructure deals, thereby reinforcing the resurgence even in IMS. Guidance for IT revenue growth (9.5–11.5% cc) and margin (19.5–20.5%) was maintained for FY19.

Outlook
In spite of HCLT’s weaker-than-expected results, we believe robust deal-wins ensure sizable revenue acceleration over coming quarters. Valuation at 11.9x FY20E EPS limits downside. Retain ‘BUY’ with TP of INR1,300.
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.

Read More