Add HCL Technologies, target price Rs 1310: HDFC Securities

HDFC Securities has add call on HCL Technologies with a target price of Rs 1310. The current market price of HCL Technologies is Rs 1173.25. Time period given by analyst is one year when HCL Technologies Ltd. price can reach defined target.

HCL Technologies Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 318394.33 Crore) operating in IT Software sector.

HCL Technologies Ltd. key Products/Revenue Segments include Software Development Charges and Computer Hardware & Software for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 22586.00 Crore, up 8.09 % from last quarter Total Income of Rs 20895.00 Crore and up 15.88 % from last year same quarter Total Income of Rs 19491.00 Crore. Company reported net profit after tax of Rs 3448.00 Crore in latest quarter.

Investment Rationale
Factored USD revenue/EPS CAGR at 12/13% over FY22-24E with IT & BS & ERS growth at 12% CAGR and P&P growth at 7%. Prowess in cloud infra services/hyperscaler investments, intact with ER&D accelerating, strengthening digital capabilities in IT & BS and organic-led growth will be value accretive

Promoter/FII Holdings
Promoters held 60.33 per cent stake in the company as of 31-Dec-2021, while FIIs owned 20.43 per cent, DIIs 13.73 per cent.