HCLTech Q3 Review - Robust Results With Strong Deals, Albeit With Lower Guidance: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.In Q3 FY24, HCLTech Ltd. reported revenue of Rs 28,446 crore, up 6.5% QoQ which stood above our expectations. The company’s operating profit stood at Rs 5,615 crore, reporting a growth of 13.8% on a QoQ basis. Beating our expectations, the company’s operating margins, too, expanded by 130 basis points to 19.8%, which was largely led by lower operating expenses, lower onsite expenses, and higher product business during the quarter. Its net profit for Q3 FY24 stood at Rs 4,350 crore, registering growth of 13.5% QoQ. .Outlook We believe HCLTech is well-placed for encouraging growth from a long-term perspective given its multiple long-term contracts with the world’s leading brands. Richer revenue visibility gives us confidence in its business growth moving forward. However, rising concerns over business uncertainties in large economies and continuing supplyside constraints are creating challenges for the company’s growth prospects moving ahead. .Valuation and recommendation We recommend a 'Hold' rating on the stock and assign a 20 times price/earning multiple to its FY26E earnings of Rs 80.3/share to arrive at a target price of Rs 1,610/share. The target price implies an upside of 4% from the current market price..Click on the attachment to read the full report:.HCLTech Q3 Review - Strong Performance With Revenue Guidance For FY24 At 5.0%-5.5% In CC Terms: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HCLTech Q3 Review - Robust Results With Strong Deals, Albeit With Lower Guidance: Axis Securities

We believe HCLTech is well-placed for encouraging growth from a long-term perspective given its multiple long-term contracts with the world’s leading brands.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

HCLTech Q3 Review - Robust Results With Strong Deals, Albeit With Lower Guidance: Axis Securities

We believe HCLTech is well-placed for encouraging growth from a long-term perspective given its multiple long-term contracts with the world’s leading brands.

Choose a plan

Follow Us

DOWNLOAD THE APP