Shares of Tata Consultancy Services and HCL Technologies recovered from early weakness to trade modestly higher by noon, as investors reassessed Q3 results and broker commentary that acknowledged steady execution but flagged limited near-term upside.
Shares of HCL Technologies slipped more than 2 percent in early trade on Tuesday as investors remained cautious despite a strong Q3 showing. Brokerages broadly flagged limited near-term upside.
HCL Tech’s Q3 results are seen reducing downside risk to earnings and reinforcing confidence in its deal momentum and medium-term growth. But, most brokerages see the stock as fairly priced in the near term.
Morgan Stanley maintained an 'Equal-weight' rating on HCLTech with a target price of Rs 1,970, reflecting an upside of over 5 percent from the stock's current market price.
For the full year FY25, HCLTech increased its revenue growth guidance in constant currency (CC) terms in the lower end by 50 basis points. Revenue growth guidance is now 3.5-5 percent.
HCL Technologies expects the deal to have a positive revenue impact over the next six years, beginning November 2023
HCL Technologies Ltd, India's fourth-largest software services exporter, reported a 28% rise in quarterly net profit, beating expectations.