HCL Tech’s closing price on the final day was $145.75 after opening at $149.95. The stock’s high and low respectively were 1249.95 and 1215.25. The company has a market value of 331,408.12 crore. HCL Tech’s 52-week high is $1311, and its 52-week low is $936.15. 95,132 shares of the stock were traded on the BSE.
In the first hour of trading on Friday, shares of HCL Technologies rose noticeably, rising 3.5% to hit the day’s high of Rs 1,266.50 on the National Stock Exchange (NSE).
After the IT behemoth released its financial results for Q2FY24, which beat market estimates for both profit and revenue, shares of the company rose sharply.
For the quarter ending in September 2023, HCL Technologies’ consolidated net profit increased by 10% to Rs 3,832 crore from Rs 3,489 crore during the same time the previous year.
The same period also saw an 8% increase in operating revenue, from Rs 24,686 crore in the equivalent quarter of the previous year to Rs 26,672 crore.
Despite HCL Tech posting good Q2 results that were in line with expectations, analysts at renowned brokerages expressed concern over the company’s decision to cut its FY24 revenue outlook, mimicking the same taken by its larger rival, Infosys.
The constant currency growth projection for HCL Tech was reduced from 6-8% to 5-6%, which raised concerns. The business kept its EBIT margin forecast at 18–19%, nevertheless.
Brokerages’ statements
Although many brokerages, including UBS, Kotak Institutional Equities, Motilal Oswal, Nuvama, and Choice Broking, gave the stock positive outlooks, JP Morgan rated it as “Underweight.”
The target price for HCL Tech shares has gone up from Rs. 1,320 to Rs. 1,350, but brokerage firm UBS has kept its ‘Neutral’ rating. Although a guidance reduction was anticipated, the brokerage highlighted that it was unusual for the company to outperform margin expectations.
Additionally, Goldman Sachs kept its rating of “Neutral” and increased its target price from Rs. 1,170 to Rs. 1,180. The company stayed true to its FY24 margin expectations and produced EBIT statistics that were 5% above estimates.
Due to better-than-expected cost control, the brokerage noted reduced revenue expectations for FY24–26 by up to 1% and higher EBIT estimates by up to 1%.
Kotak Institutional Equities, meanwhile, kept its ‘Buy’ rating on HCL and maintained its Rs 1,410 price objective. The brokerage barely slightly revised its projections despite some disappointment in the services sector.
The brokerage pointed out that HCL Technologies has been able to maintain a balanced business portfolio and steady growth as a result of its multi-year investments in digital capabilities.
Another brokerage firm that suggested a “Buy” on HCL Tech with a price target of Rs. 1,410 based on 21x FY25E EPS is Motilal Oswal. Although the company’s Q2FY24 sales growth barely fell short of expectations, Motilal Oswal still reduced its predictions for EPS for FY24 and FY25 by 1.6% and 3.0%, respectively.
The stock’s ‘Buy’ rating was maintained by Nuvama Institutional Equities, which also increased the price objective from Rs. 1,300 to Rs. 1,400.
HCL Tech’s Q2 profits and the lowered outlook were both in line with expectations, according to the brokerage. The EBIT margin was strong, greatly above expectations.
Following the release of HCL Tech’s Q2 results, Choice Broking likewise expressed a positive outlook on the firm. In the statement, it was stated that “all-time high bookings driven by a standout mega deal underscores the ability to seize exceptional opportunities in this uncertain macro environment.”
The management has guided for 5 to 6 percent YoY cc growth for FY24E and anticipates H2 to be higher than H1. HCL is still working to raise its ROIC. We have introduced FY26E and anticipate that over the course of FY23–FY26E, Revenue, EBIT, and PAT will expand at a respective CAGR of 9.4/11.7/11.8 percent. With a revised target price of Rs 1,300 and an implied PE of 17x (unchanged) on FY26E EPS of Rs 76.5, we raise our rating to ADD, the brokerage said.
JP Morgan, on the other hand, kept its ‘Underweight’ rating and Rs. 1,070 target price on HCL Technologies.
Although the guideline reduction by the IT business was not unexpected, JP Morgan suggested that it might not be the last. The company recognised HCL Software’s recovery to 16% as well as HCL’s strong margin expansion, cash conversion, and growth. However, it increased margins while increasing sales expectations for FY24, FY25, and FY26 by 1-2%, which resulted in an increase in EPS of 0–1%.
1 thought on “Share value of Hcl Tech HCL Tech closed at 1255.3 today, up 2.55% from yesterday’s price of 1224.05, according to today’s live updates.”