HCL Tech Shares Hit Record High After Deal With South Korea’s Hancom
Shares of HCL Technologies Ltd. jumped to a record high after the software services provider partnered a South Korean software firm for technology solutions.
HCL Tech and Hancom Inc. have signed a strategic partnership to share advanced software technology solutions and establish a mutual bridgehead for overseas expansion, the Indian IT company said in an exchange filing.
HCL Tech will support training for software development at Hancom’s research and development centre in India, which was
established in 2016.
HCL Tech will also share its development studio and provide HR support to meet demand and development capacity at the R&D centre.
It will promote technological cooperation to strengthen Hancom products’ global competitiveness.
The two companies also plan to cooperate on global market expansion. This includes Hancom’s entry into Southeast Asian countries such as Taiwan, Vietnam and Bangladesh, Middle Eastern countries, and HCL’s business expansion into the South Korean market.
Daeki Kim, chief operating officer at Hancom, in the filing said HCL Tech’s modern applications and architecture principles would allow the company to scale its products for enterprise customers in global markets. Hancom, Kim said, will also support HCL Tech in its endeavor to scale its growth in the South Korean market.
Shares of HCL Tech rose as much as 2.66% to a record high of Rs 1,240.60 apiece in intraday trade. The stock closed with 2.50% gains at Rs 1,238.65 on Tuesday. Of the 48 analysts tracking the company, 41 have a ‘buy’ rating, four recommended a ‘hold’ and three suggest a ‘sell’, according to Bloomberg data. The 12-month consensus price target implies a downside of 2.4%.
The relative strength index on the stock was 76, suggesting it may be ‘overbought’. Shares of HCL Tech have risen 31% so far this year compared with a 46% rally in the Nifty IT Index.