Buy HCL Technologies: target of Rs 1400: Sharekhan

Sharekhan is bullish on HCL Technologies has recommended buy rating on the stock with a target price of Rs 1400 in its research report dated October 14, 2021.

Broker Research

October 18, 2021 / 14:56 IST

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E. Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

26 Aug, 2025 12:21

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Sharekhan's research report on HCL Technologies

Q2FY22 missed the mark due to a sharp fall in P&P business revenue; however, services revenue growth was strong, led by broad-based demand; Q2 saw healthy deal bookings, net employee additions and client addition As expected, the management reiterated its earlier guidance of a double-digit CC revenue growth and EBIT margins of 19-21%. The management guided for P&P revenue growth of 0-1% for FY2022 and expects a strong rebound in Q3. The company announced a policy that entails investor payouts of not less than 75% of net income cumulatively, over FY2022E to FY2026E, which is positive in our view.

Outlook

We maintain a Buy on HCL Technologies with a PT of Rs. 1,400, given strong deal wins, healthy client additions and reasonable valuations.

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