HCL Tech’s Valuation Continues To Discount Product Opportunity: Motilal Oswal
People walk in front of the HCL Technologies Ltd office at Noida, on the outskirts of New Delhi. Image used for representational purposes.

HCL Tech’s Valuation Continues To Discount Product Opportunity: Motilal Oswal

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

HCL Technologies Ltd. remains one the most attractive stocks in our coverage, trading at 15 times FY23E price-to-earnings (38%/26% discount to Tata Consultancy Services Ltd./Infosys Ltd.), despite delivering 20% earnings growth in FY21 year-to-date.

We expect this discount to narrow as it benefits from increasing cloud spend, given its large exposure to IT infrastructure.

It can potentially re-rate if it continues to deliver growth in the software product business, which remains a key overhang on the stock price, despite outperforming expectations over the last two quarters.

Click on the attachment to read the full report:

Motilal Oswal HCL Tech Company Update.pdf

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