Shutterstock.comEdelweiss has given a buy rating to HCL Technologies with a target price of Rs 952. The share price moved down by 0.12 per cent from its previous close of Rs 648.45. The stock’s last traded price is Rs 648.45.
HCL Technologies Ltd. key Products/Revenue Segments include Software Development Charges which contributed Rs 25834.00 Crore to Sales Value (99.31 % of Total Sales) and Computer Hardware & Software which contributed Rs 178.00 Crore to Sales Value (0.68 % of Total Sales)for the year ending 31-Mar-2019.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 17842.00 Crore, down -4.01 % from last quarter Sales of Rs 18587.00 Crore and up 8.61 % from last year same quarter Sales of Rs 16427.00 Crore. The Company reported net profit after tax of Rs 2935.00 Crore in latest quarter.
Investment Rationale
The brokerage said that HCLT’s guidance of a strong recovery in revenue growth along with stable margins and a healthy deal pipeline prompts us to raise its target multiple from 16x to 18x as it believes IT services is at the bottom of the imminent tech upcycle led by cloud adoption, digital and core transformation leading to tremendous pressure on local resources and pushing outsourcing. The brokerage retains ‘BUY/SP’ with a revised TP of INR 952 (versus earlier TP of INR846 at 16x FY22E).
Promoter/FII Holdings
Promoters held 60.3 per cent stake in the company as of March 31, 2020, while FIIs held 26.4 per cent, DIIs 9.2 per cent and public and others 4.1 per cent.
HCL Technologies Ltd. key Products/Revenue Segments include Software Development Charges which contributed Rs 25834.00 Crore to Sales Value (99.31 % of Total Sales) and Computer Hardware & Software which contributed Rs 178.00 Crore to Sales Value (0.68 % of Total Sales)for the year ending 31-Mar-2019.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 17842.00 Crore, down -4.01 % from last quarter Sales of Rs 18587.00 Crore and up 8.61 % from last year same quarter Sales of Rs 16427.00 Crore. The Company reported net profit after tax of Rs 2935.00 Crore in latest quarter.
Investment Rationale
The brokerage said that HCLT’s guidance of a strong recovery in revenue growth along with stable margins and a healthy deal pipeline prompts us to raise its target multiple from 16x to 18x as it believes IT services is at the bottom of the imminent tech upcycle led by cloud adoption, digital and core transformation leading to tremendous pressure on local resources and pushing outsourcing. The brokerage retains ‘BUY/SP’ with a revised TP of INR 952 (versus earlier TP of INR846 at 16x FY22E).
Promoter/FII Holdings
Promoters held 60.3 per cent stake in the company as of March 31, 2020, while FIIs held 26.4 per cent, DIIs 9.2 per cent and public and others 4.1 per cent.