HCL Technologies - Q1FY23 Result Update - YES Securities

Weak operating margin but near to medium term outlook remains strong

Overall, the sequential revenue growth was inline with expectation; but the EBIT margin came much below estimates. The revenue growth is led by the Services segment (IT Services and ER&D), that continues to maintain growth momentum. The P&P Segment is expected to grow at mid single digit YoY. We expect revenue growth to be more predictable and robust going ahead as IT services contribution rises in revenue mix. Deal booking remains strong and that offers strong growth visibility for FY23. We maintain BUY Rating on the stock with revised target price of Rs 1,140/share at 18x on FY24E.

Link to the report

Shares of HCL Technologies Limited was last trading in BSE at Rs. 917.75 as compared to the previous close of Rs. 928.05. The total number of shares traded during the day was 382890 in over 21661 trades.

The stock hit an intraday high of Rs. 931.00 and intraday low of 905.20. The net turnover during the day was Rs. 350598970.00.

Source : Equity Bulls

Keywords

HCLTechnologies INE860A01027 Q1FY23 ResultUpdate YESSecurities