Moneycontrol
Get App
Last Updated : May 21, 2020 08:49 PM IST | Source: Moneycontrol.com

Buy HCL Technologies; target of Rs 615: Motilal Oswal

Motilal Oswal is bullish on HCL Technologies has recommended buy rating on the stock with a target price of Rs 615 in its research report dated May 07, 2020.

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

Motilal Oswal 's research report on HCL Technologies


HCLT’s good execution despite the COVID-19 disruption in Mar’20 was impressive. Strong growth in Mode-2 (~7% QoQ, CC) and acquired IBM products reaching anticipated revenue run-rate (USD150-160m) were key positives. As expected, the company’s near-term outlook was cautious given the heightened uncertainty around demand, pricing and payment terms due to COVID-19. However, it is encouraging to note the healthy increase in order book (+12% YoY) and that supply-side issues are largely under control. We plan to keenly monitor the impact of strong cloud adoption on the IMS segment (~37% of revenue) and discretionary spending patterns in ER&D.


Outlook


Our estimates remain largely the same over FY20-22E. Maintain Buy as we expect HCLT to better navigate the current crisis and emerge stronger on the back of expected increase in enterprise demand for digital services.


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.




Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 21, 2020 08:49 pm
Sections
Follow us on