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Mumbai: Most brokerages have maintained a bullish stance on HCL Technologies even as the company’s June quarter revenue and margins belied market expectations. Shares of HCL Technologies ended down 2.3% at ₹977.30 on Tuesday.
CLSA, HSBC, Jefferies, Motilal Oswal and Emkay Global have maintained ‘buy’ rating on the stock. Credit Suisse has retained an ‘outperform’ rating and Kotak Institutional has maintained an ‘add’ rating.
Cutting FY22-FY24 earnings per share estimates by 3-4%, Credit Suisse said the quarterly result was a stark miss on revenue and margins.
“HCL Technologies’ 27% valuation discount to Wipro is a bit harsh given HCL Technologies’ consistent past outperformance on revenue and profit growth," said Credit Suisse.
CLSA said the revenue miss was a disappointment but it is due to transient factors and momentum is likely to come back strongly in the second quarter driven by the ramp-up of large deals won in the quarter ended March 2021 and the clawback of revenue slippage in the first quarter.
HCL Technologies reported an 8.5% sequential rise in consolidated net profit to ₹3,214 crore for the quarter ended June, which was in line with analysts’ estimates. Its consolidated revenue increased 2.2% from a quarter ago to ₹20,068 crore, which was slightly below estimates. The company said it expects revenue to grow in double-digits in the current financial year in constant currency terms.
CLSA, HSBC, Jefferies, Motilal Oswal and Emkay Global have maintained ‘buy’ rating on the stock. Credit Suisse has retained an ‘outperform’ rating and Kotak Institutional has maintained an ‘add’ rating.
Cutting FY22-FY24 earnings per share estimates by 3-4%, Credit Suisse said the quarterly result was a stark miss on revenue and margins.
Did you Know?
Stock score of HCL Technologies Ltd moved up by 1 in a month on a 10-point scale.
View Latest Stock Report »“HCL Technologies’ 27% valuation discount to Wipro is a bit harsh given HCL Technologies’ consistent past outperformance on revenue and profit growth," said Credit Suisse.
CLSA said the revenue miss was a disappointment but it is due to transient factors and momentum is likely to come back strongly in the second quarter driven by the ramp-up of large deals won in the quarter ended March 2021 and the clawback of revenue slippage in the first quarter.
HCL Technologies reported an 8.5% sequential rise in consolidated net profit to ₹3,214 crore for the quarter ended June, which was in line with analysts’ estimates. Its consolidated revenue increased 2.2% from a quarter ago to ₹20,068 crore, which was slightly below estimates. The company said it expects revenue to grow in double-digits in the current financial year in constant currency terms.
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