The third quarter results of IT giant HCL Tech were better than expected. The company’s constant currency revenue growth (CONSTANT CURRENCY REVENUE GROWTH) reached a peak of 46 quarters with a growth of 7.6%. The company’s profit also increased by 5%. Its margins remained stable during this period. However, in the January series, the stock has shown a rise of about one and a half percent. On a quarterly basis, the company’s profit for the December 2021 quarter grew by 5.4 per cent to Rs 3,442 crore. The company’s income on a quarterly basis grew by 8.1 per cent to Rs 22,331 crore.
CS opinion on HCL Tech
CS has given Outperform Rating on HCL TECH and has set a target of increasing the share price from Rs 1450 to Rs 1650. He says revenue growth was solid but margins were a disappointment. At the same time, the company is ready to strengthen in FY23. They have raised its EPS estimate for FY22E-FY24 by 1-8%.
NOMURA’s opinion on HCL TECH
NOMURA has a Buy rating on HCL TECH and has a target of Rs 1580 for the stock. He says its earnings grew but margins were weaker than expected. Revenue was better on the back of strong return in products and platforms. They have raised its EPS estimate for FY22-24 by 0.2-1.6%. Its revenue is expected to increase.
JP MORGAN’s opinion on HCL TECH
JP MORGAN has an Overweight Rating on HCL TECH and has a target of increasing the share price from Rs 1400 to Rs 1500. They say that they have upgraded its revenue by 1-2 per cent but reduced the margin by 20-60 bps. Along with this, its EPS estimate for FY22-24 has been reduced by 1-3 per cent.
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CLSA’s opinion on HCL Tech
CLSA has given Outperform Rating on HCL Tech and has set a lower target of Rs 1450 for the stock from Rs 1470. He says its valuation is attractive. Besides, it has lowered its EPS estimate for FY23/24 by 2%.
MS’s opinion on HCL Tech
MS has given Equal Weight Rating on HCL Tech and has fixed target of share as Rs.1450 from Rs.1360.
Citi’s opinion on HCL Tech
Citi has given Neutral Rating on HCL Tech and has set the target of share down from Rs 1400 to Rs 1385. They say that the EBIT of the company remained as per the estimate. But the product/platforms and margin outlook should be watched.
UBS’s opinion on HCL Tech
UBS has a sell rating on HCL Tech and has a target of Rs 925 for the stock. He says the company’s earnings were good in the third quarter due to the software spike.
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