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Last Updated : May 21, 2020 08:49 PM IST | Source:

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.

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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.


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

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First Published on May 21, 2020 08:49 pm
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