Reduce HCL Technologies; target of Rs 1455: ICICI Securities

ICICI Securities research report on HCL Technologies

HCLT analyst day KTAs: Leveraging an all-weather portfolio, HCLT aims for consistent growth over medium term. Key growth drivers are: Data and AI, SAP cloud platform, ER&D, cloud migration and cybersecurity. Its key focus areas include: 1) Capitalising on gAI wave, 2) ramping up stagnated margins through project Ascend – using gAI as a strategic tool to reduce costs and increase efficiency in SDLC, and 3) delivering industry leading growth in TMT where demand is improving (led by semiconductor). Current demand environment is mostly driven by cost optimisation but it looks better vs three months ago, especially for financial services (refer our note: link ).

Outlook

HCLT is taking pro-active approach to take genAI led productivity gains to clients. We maintain REDUCE based on muted FY25 growth guidance of 3-5% CC.