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Shares of HCL Technologies fell the most in 2-1/2 years. The stock extended its decline for a second session; it was down as much as 7.8 per cent at Rs 922.35, its lowest since March 23.
The stock posted its biggest intraday percentage loss since October 2015, and was the top loser on the NSE index.
The software services exporter's Q4 profit fell nearly 10 per cent, missing analyst estimates, according to Thomson Reuters data. The company expects FY19 revenue to rise 9.5-11.5 per cent in constant currency terms.
Q4 was a tad weaker than expected, and the revenue growth guidance doesn't reflect any acceleration in growth for the company, analysts at HSBC said, downgrading the stock to “hold” with a price target of Rs 1,050.
“While IMS deals have picked up, pricing compression at renewals continue,” says Macquarie; it has retained “outperform” rating with a price target of Rs 1,160.
Results were largely in-line, but organic revenue growth guidance for fiscal 2019 were disappointing, according to Morgan Stanley. It has kept “overweight” rating with a price target of Rs 1,060.
Analysts at Citi say guidance implies muted organic growth; it has maintained “neutral” rating with a price target of Rs 1,035. Key investor concern will be on IMS business growth and significant inorganic growth, according to Citi.
About 27 out of 43 brokerages have rated the stock “buy” or higher, 11 “hold” and 5 “sell” or lower; their median price target is Rs 1,055, Thomson Reuters data.
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