Comments
Reliance Securities
HCL Tech (Buy)
CMP: ₹941.05
Target: ₹1,150
HCL Technologies’ stock price rose 3.9 per cent on Wednesday, while the BSE Sensex rose 0.4 per cent. HCL Tech’s 3QFY18 revenue rose 3.1 per cent q-o-q in dollar terms (3.3 per cent q-o-q in CC terms), led mainly by Engineering Services (+13.6 per cent in CC terms).
The IT major has maintained its guidance for 10.5-12.5 per cent revenue growth in CC terms for FY18E, while EBIT margin is likely to come in at a similar range of 19.5-20.5 per cent.
HCL Technologies has consistently won $1 billion worth of new deals over the past several quarters, driving good revenue visibility.
The IT major’s investments in IP initiatives should bear fruit over the next few quarters, driving revenue and profit growth.
We expect HCL Technologies to report 12.2 per cent USD revenue CAGR over FY18E-FY20E.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.