Moneycontrol PRO
UPCOMING EVENT:Attend Traders Carnival Live, 3 days 12 sessions. Prices Increasing Soon Rs.9999 1199/-, exclusive for Moneycontrol Pro subscribers. Register now!

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 August 26, 2021.

September 01, 2021 / 01:13 PM IST
HDFC Securities research report's outlook and valuations:  500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive across the sector and ahead of consensus on growth/EPS; our preferred picks are Infosys, HCLT, Mphasis and Zensar."" title="HDFC Securities research report's outlook and valuations:  "The YTD EPS upgrades (consensus) have been led by mid-tiers such as Tata Elxis, Mindtree, Mastek, and Persistent Systems, ranging from 20-40 percent and, within tier 1, by Wipro (~15%). We expect the sector (coverage universe) to post 13 percent and 14.5 percent USD revenue/APAT CAGR over FY21-24E compared to 6.5/7.5 percent over the past five years. The mid-tier valuation premium relative to tier 1s may sustain, based on its relative outperformance (>500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive across the sector and ahead of consensus on growth/EPS; our preferred picks are Infosys, HCLT, Mphasis and Zensar."" width="100%" height="auto" >

HDFC Securities research report's outlook and valuations:  "The YTD EPS upgrades (consensus) have been led by mid-tiers such as Tata Elxis, Mindtree, Mastek, and Persistent Systems, ranging from 20-40 percent and, within tier 1, by Wipro (~15%). We expect the sector (coverage universe) to post 13 percent and 14.5 percent USD revenue/APAT CAGR over FY21-24E compared to 6.5/7.5 percent over the past five years. The mid-tier valuation premium relative to tier 1s may sustain, based on its relative outperformance (>500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive across the sector and ahead of consensus on growth/EPS; our preferred picks are Infosys, HCLT, Mphasis and Zensar."

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on HCL Technologies


After muted performance for the last two consecutive quarters, HCL Tech expects revenue growth to accelerate from Q2FY2022E given higher demand for Cloud IMS, record-high bookings and a strong deal pipeline. HCL Tech‘s ERS business is expected to outperform its IT business in FY2022E led by increasing demand for digital engineering, recovery in asset-heavy industries and deal wins. Company has stepped up investments in products and sales to drive the growth of its P&P business. Despite investments in capability building and wage revisions, we expect margins to sustain supported by revenue growth, higher offshoring and employee pyramid.


Outlook


We maintain a Buy on the stock with a PT of Rs. 1,400, given anticipation of strong acceleration in revenue growth from Q2FY2022 and reasonable valuation.


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: Sep 1, 2021 01:13 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark