Analysts Hike Price Targets For HCL Technologies After Q3 Results
Analysts lauded HCL Technologies Ltd.’s growth in products & platforms business, increasing exposure in engineering and R&D, and reasonable valuations, among others, as they hiked price targets for the software services provider after the third quarter.
The company’s revenue rose 3.8% over the preceding three months to Rs 19,302 crore in the October-December, according to an exchange filing. Its EBIT margin expanded to 22.22% from 21.59% despite wage hikes. Net and operating income, too, increased during the period.
HCL Tech even raised its revenue guidance to 2-3% for the quarter ending March from 1.5%-2.5% growth forecast earlier. It expects EBIT margin for FY21 to be in the range of 21-21.5% against 20-21% predicted earlier.
While analysts see the company’s guidance as disappointing, they maintained their bullish investment recommendation on the stock. Of the 47 analysts tracking HCL Technologies, 42 have a ‘buy’ rating, four suggest a ‘hold’ and one recommends a ‘sell’.
Shares of HCL Technologies are trading little changed in Monday's trading session. Based on the 12-month Bloomberg consensus data, the stock has a return potential of 13%.
Here’s what analysts have to say about HCL Tech’s Q3 results...