Add HCL Technologies, target price Rs 1207: Choice Equity Broking

Choice Equity Broking Private has add call on HCL Technologies with a target price of Rs 1207. The current market price of HCL Technologies is Rs 1114.35.

HCL Technologies, incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 302044.49 Crore) operating in IT Software sector.

HCL Technologies key Products/Revenue Segments include Software Development Charges and Computer Hardware & Software for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 26960.00 Crore, up 8.18 % from last quarter Total Income of Rs 24922.00 Crore and up 19.37 % from last year same quarter Total Income of Rs 22586.00 Crore. Company has reported net profit after tax of Rs 4096.00 Crore in latest quarter.

The company’s top management includes Ms.Roshni Nadar Malhotra, Ms.Vanitha Narayanan, Mr.Simon England, Dr.Mohan Chellappa, Mr.Deepak Kapoor, Ms.Nishi Vasudeva, Mr.Thomas Sieber, Mr.Subramanian Madhavan, Dr.Sosale Shankara Sastry, Ms.Robin Ann Abrams, Mr.R Srinivasan, Mr.Shikhar Malhotra, Mr.Shiv Nadar, Mr.C Vijayakumar. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 271 Crore shares outstanding.

Investment Rationale
Healthy demand outlook persists amid macro-uncertainties - reported TCV worth US$ 2,347 Mn, vis-a-vis $2,135 Mn in Q3FY22 (+10% YoY) and $2,384 Mn inQ2FY23 (-1.6% QoQ). Management has communicated that strong deal bookings happened in the US while Europe deal wins may moderate They expect continued traction in H2FY24 while expecting softness in the interim time.

Promoter/FII Holdings
Promoters held 60.72 per cent stake in the company as of 31-Dec-2022, while FIIs owned 18.29 per cent, DIIs 15.77 per cent.