Motilal Oswal's research report on HCL Technologies
We attended HCLT’s Investor Day 2024 wherein the management outlined its strategic objectives and showcased its capabilities in GenAI. We believe HCLT’s go-to-market (GTM) strategy, which combines its IT Services and ER&D business offerings, gives HCLT an edge over its peers. We also witnessed signs of improvement in the demand environment in financial services.
Outlook
As mentioned in our 1QFY25 result note, we believe HCLT warrants a multiple premium to Infosys. We thus maintain our earlier upgraded target multiple of 27x (~10% premium to Infosys). We introduce FY27 estimates in the note and roll over to Sep’26E EPS. Reiterate BUY with a revised TP of INR2,000 (based on 27x Sep’26E EPS).
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