HCL Technologies Ltd. share price target

HCL Tech (HCLT) reported 6.4% QoQ USD growth coming from mid-high single digit recovery across verticals.

HCL Tech announced that it is going to acquire DWS group headquartered in Australia for AU$ 158.2. The deal will likely close till December 2020. HCL Tech has strong a foothold in geographies like North America and Europe

HCL Tech has announced its intent to acquire DWS Limited (DWS) for Australian $158.2 million (~| 849.2 crore) valuing the company at 0.94x EV/Sales (based on FY20 Sales) and ~21x FY20 EPS. The acquisition is subject to regulatory approvals and is expected completion timeline is by December 2020. The acquisition will add ~1% to company's top line in FY22E and will also help the company in expanding it's presence in Australia and New Zealand. The company will also be able to cross sell and up sell to existing clients of DWS. Although DWS's PAT margins (~4.4%) are lower...

To acquire Australia-based IT firm DWS Limited, expand presence in ANZ region HCL Technologies has announced its intent to acquire Australia-based IT, business and management consulting firm DWS Limited. DWS - listed on the Australian Securities Exchange (ASX) - employed 772 people as of June-end, has offices in Melbourne, Sydney, Adelaide, Brisbane and Canberra and provides a range of IT services including Digital Transformation, Application Development & Support, Program & Project Management and Consulting, mainly in Australia and New Zealand. The acquisition will be done by a process of Scheme of Arrangement to be approved by courts in Australia. It will be subject to the approvals of...

Mid-quarter update raises revenue and margin guidance for Q2FY2021, driven by better-than-expected execution, pick-up in discretionary spends that were held up, and return of normalcy in certain pockets. Given strong capabilities in IMS, HCL Tech would continue to win consolidation deals with...

We recommend a BUY on HCL Tech with a Target Price of Rs 795, an upside of ~6% from CMP of Rs. 749 and Stop Loss Rs 700.

Over the period FY16-FY20, HCL Technologies (HCLT) delivered robust double-digit USD revenue growth of 12.4% CAGR (INR revenue CAGR of 14.6%) despite the fact that its peers were posting slower growth. And it did experience a slowdown in Q1FY21 (QoQ decline of 7.4%), the order pipeline and energetic client engagements are suggestive of growth coming back. The management enthused by these recent developments has guided for 1.5-2.5% QoQ constant currency growth for the rest of FY21 and margins are expected in the range of 19.5%-20.5%.

Revenue at Rs.17,841crores; down 4.0% QoQ & up 8.6% YoY, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin at 25.6%, Earnings Before Interest and Taxes (EBIT) margin at 20.5% and Net Income at Rs.2,931 crores ; down 7.3% QoQ & up 31.43%YoY The Company's revenue in constant currency was down 7.2% QoQ & up 1% YoY. HCL said it expects revenue to increase QoQ by an average of 1.5% to 2.5% in constant currency for the next 3 quarters. It expects operating margin between 19.5% and 20.5% for FY21. On a sequential basis, net profit declined 7.3% and revenue fell 4% in Q1 June 2020 over Q4 March 2020. Consolidated EBITDA fell 3.3% to Rs 4566 crore in Q1 June 2020 over Q4 March 2020....

HCL Technologies Limited provides software development, business process outsourcing, information technology and infrastructure services. The company is spread across 49 countries with 150,000+ employees and...