Hold HCL Technologies; target of Rs 930: ICICI Direct

ICICI Direct's research report on HCL Technologies

HCL Tech’s constant currency (CC) revenue grew 3.8% QoQ vs. 3% in Q3 primarily driven by acquisitions as Butler (full quarter consolidation), Geometric (one month consolidation) & IP partnerships came into play. Adjusting for the acquisitions, organic growth was only 1.3% QoQ.

Outlook

We expect HCL Tech to report revenue, PAT CAGR of 9.3%, 4.0% in FY17-19E. We have rolled over our valuation to FY19E with a HOLD recommendation and a revised target price of Rs 930 (14x FY19 EPS).