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ICICI Direct has buy call on HCL Technologies with a target price of Rs 1150. The current market price of HCL Technologies Ltd. is Rs 1003.
HCL Technologies Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 271570.03 Crore) operating in IT Software sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 19491.00 Crore, up 3.71 % from last quarter Total Income of Rs 18793.00 Crore and up 6.55 % from last year same quarter Total Income of Rs 18292.00 Crore. Company reported net profit after tax of Rs 3977.00 Crore in latest quarter.
Investment Rationale
HCL Technologies is expected to report 3.1% QoQ revenue growth in CC terms mainly led by acquisition of DWS, easing of stress in ER&D segment, traction in financial services, healthcare and utilities. Further, tailwind from cross currency revenues is expected to boost dollar revenues (up 4.0% QoQ). However, EBIT margins are expected to decline 375 bps QoQ mainly led by partial wage hikes, one-time bonus of Rs 700 crore and seasonality in product business. Consequently, PAT is expected to decline 23.2% QoQ. Investor interest: FY22E revenue & margin guidance, outlook on IMS revenues, product revenues, vertical wise commentary and acquisition & capital allocation strategy
Promoter/FII Holdings
Promoters held 60.3 per cent stake in the company as of June 30, 2020, while FIIs held 25.6 per cent, DIIs held 10.1 and public and others 4 per cent.
HCL Technologies Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 271570.03 Crore) operating in IT Software sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 19491.00 Crore, up 3.71 % from last quarter Total Income of Rs 18793.00 Crore and up 6.55 % from last year same quarter Total Income of Rs 18292.00 Crore. Company reported net profit after tax of Rs 3977.00 Crore in latest quarter.
Investment Rationale
HCL Technologies is expected to report 3.1% QoQ revenue growth in CC terms mainly led by acquisition of DWS, easing of stress in ER&D segment, traction in financial services, healthcare and utilities. Further, tailwind from cross currency revenues is expected to boost dollar revenues (up 4.0% QoQ). However, EBIT margins are expected to decline 375 bps QoQ mainly led by partial wage hikes, one-time bonus of Rs 700 crore and seasonality in product business. Consequently, PAT is expected to decline 23.2% QoQ. Investor interest: FY22E revenue & margin guidance, outlook on IMS revenues, product revenues, vertical wise commentary and acquisition & capital allocation strategy
Promoter/FII Holdings
Promoters held 60.3 per cent stake in the company as of June 30, 2020, while FIIs held 25.6 per cent, DIIs held 10.1 and public and others 4 per cent.
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