HCL Technologies Ltd. share price target

Quarter ended March 2022 compared with Quarter ended December 2021. Net sales (including other operating income) of HCL Technologies has increased 1.19% to Rs 22597 crore. Operating profit margin has declined from 24.15% to 22.36%, leading to 6.30%...

HCLT delivered a revenue growth of 1.1% QoQ CC in 4QFY22 (inline), with a strong growth in Services (+5% QoQ CC). However, the same was dragged down by its troubled Products and Platforms (P&P, -24% QoQ) vertical due to seasonality. It reported a good new deal TCV of USD2.26b (+6% QoQ). EBIT margin at 17.9% (-110bp QoQ) was in line, with a 180bp hit in the P&P business partially offset by an 80bp improvement in Services' margin. The management had initially guided at a FY23 revenue growth of 12-14%. It lowered its margin guidance to 18-20% (as against 19-21% guided in FY22)....

FY22 new deal TCV is $8.3 bn, 14% YoY and ACV is higher by 21% YoY. target price to Rs. 1169 (earlier Rs. 1295) led by 1) decline in margin profile, increase in risk free rate and 4) moderation in terminal growth rate. We cut...

We recommend a BUY rating on the stock and assign a 20x P/E multiple to its FY24E earnings of Rs 67.4/share to arrive at a TP of Rs 1,345/share, indicating an upside of 22% from the CMP.

Q4 revenue growth of 0.5% QoQ USD underperformed our estimate owing to a double-digit slowdown in Mode-3 business

HCL Technologies Ltd. provides software development business process outsourcing, information technology and infrastructure services. Company is spread across 52 countries with 197,000+ employees and its client base,...