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Buy or Sell or Hold HCL Tech Stock: Management commentary increased confidence in HCL Tech, should bet on the stock?

HCL Tech is seen as the top loser of Sensex 30 in today’s business. The company’s profit has decreased by about 8.5 percent on a yearly basis.

HCL Technologies Stock Outlook: After the results of the June quarter of the financial year 2023, today there is a weakness in the shares of HCL Tech and it is seen as the top loser of Sensex 30. The stock fell 2 per cent today to the level of Rs 905, while on Tuesday it closed at Rs 928. The company’s profit has declined by about 8.5 percent on a year-on-year basis. Brokerage houses say that the weak growth of IT services has disappointed. However, growth is expected to improve in 2QFY23 on the back of strong deals, headcount addition and positivity commentary from the management. When demand improves going forward, the company is in a better position to achieve growth.

Growth Guidance Confidence Booster

Brokerage house Motilal Oswal has given an investment advice in the stock of HCL Technologies and has given a target of Rs 1100. In terms of current price of Rs 928, it can give 19 percent return. The brokerage says that the growth in services has been decent on a quarterly basis and the company has got strong deals. The headcount addition and commentary from the management have also boosted confidence. Management expects no slowdown in demand and has retained the CC 12-14 per cent for FY23. At the same time, the guidance for margin has been kept at 18-20 percent. Management expects margins to improve from current levels.

Most brokerages cut their target

Most of the global brokerages have reduced their target price for HCL Technologies. They have mixed opinions on Nivea. Brokerage house Credit Suisse has given outperform rating but has cut the target price to Rs 1110. The brokerage house CLSA has also given the outperform rating and has now set the target to Rs 1000. Goldman Sachs has a neutral rating on the stock and the target price is Rs 976. Giving hold rating, Jefferies has given a target of Rs 980. Giving an underweight rating on the stock, JP Morgan has reduced the target to Rs 800.

(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews. Markets are risky, so take expert opinion before investing.)

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