HCL Technologies is well-placed for organic growth acceleration in FY 20, driven by strong deal win momentum in the last couple of quarters, which should translate into revenues starting the first or second quarter FY20, Nomura has said in a note.
Expect HCLT to guide for 7-9 per cent FY20 constant currency organic revenue growth (versus 6.5 per cent for FY19) and 14-16 per cent overall constant currency revenue growth, Nomura said.
Nomura says HCLT's deals with Procter & Gamble, Nokia, Barclays and Xerox combined is likely to contribute $2.2 billion in revenue over the next six years, while a deal with Broadcom will add $120 million annually.
HCLT shares were up 1.8 per cent as of 0417 GMT. Thirty of the 44 brokerages covering the stock have a uy' or higher rating, 10 have 'hold', while four have a 'buy' rating. The median price target is Rs 1,200.
The stock has an estimated PE of 14.82 versus a sector average of 15.61.
The stock has gained 13.7 per cent this year as of Monday's close, while bigger rivals, nfosys Ltd and Tata Consultancy Services, rose 17.1 per cent and 9.4 per cent, respectively.