HCL Technologies - Oct 13, 2020 - Angel Broking

Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

"We are upgrading our target on HCL Technologies Ltd. from Rs. 945 to Rs. 1,051 post a strong set of numbers and positive management commentary from TCS. TCS had reported a 7.2% qoq growth in revenues to USD 5.42bn which was significantly ahead of street estimates while management commentary on demand outlook was also encouraging. Post the TCS numbers we are seeing a rerating for the IT sector. HCL Tech had earlier upgraded its mid quarter guidance and expected revenue growth for Q2FY21 to exceed 3.5% in CC terms. At current prices the stock is trading at a significant discount to the other large cap IT companies like Infosys and TCS and offers tremendous value at current levels given market leader status in Infrastructure management. HCL Tech is our top picks in the large cap IT space and we raise our target P/E multiple to 20x from 18x of FY2022 EPS estimates to factor in better revenue visibility for the sector and raise our target price to Rs. 1,051."

Shares of HCL TECHNOLOGIES LTD. was last trading in BSE at Rs.900.45 as compared to the previous close of Rs. 866.35. The total number of shares traded during the day was 835311 in over 20565 trades.

The stock hit an intraday high of Rs. 906.7 and intraday low of 864.85. The net turnover during the day was Rs. 746853840.

Source : Equity Bulls

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