Neutral on HCL Technologies, target Rs 1050: Motilal Oswal Securities
Motilal Oswal Securities has a neutral call on HCL Technologies Ltd. with a target price of Rs 1050. The current market price of HCL Technologies Ltd. is Rs 913.55. The time period given by analyst is year when HCL Technologies Ltd. price can reach defined target.
HCL Technologies Ltd., incorporated in the year 1991, is a large-cap company with a market cap of Rs 128942.31 crore.
Investment rationale by Motilal Oswal Valuation view: We have marginally revised down our revenue estimates for FY19-20 owing to the slight 4Q miss and the tepid FY19 guidance, which was partly offset by cross-currency tailwinds. Our price target of Rs 1,050 discounts forward earnings by 14x. We maintain Neutral, and would reconsider the same subject to: [1] greater confidence in IRRs from IBM deals and/or [2] turnaround in core areas of Application Services and IMS.
HCL Technologies Ltd., incorporated in the year 1991, is a large-cap company with a market cap of Rs 128942.31 crore.
Investment rationale by Motilal Oswal Valuation view: We have marginally revised down our revenue estimates for FY19-20 owing to the slight 4Q miss and the tepid FY19 guidance, which was partly offset by cross-currency tailwinds. Our price target of Rs 1,050 discounts forward earnings by 14x. We maintain Neutral, and would reconsider the same subject to: [1] greater confidence in IRRs from IBM deals and/or [2] turnaround in core areas of Application Services and IMS.
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