Buy HCL Technologies, target price Rs 875: Edelweiss

Edelweiss has given a buy rating to HCL Technologies with a target price of Rs 875. The share price moved down by 0.66 per cent from its previous close of Rs 840.10. The stock’s last traded price is Rs 834.55.

HCL Technologies Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 228083.55 Crore) operating in IT Software sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 18594.00 Crore, up 4.21 % from last quarter Sales of Rs 17842.00 Crore and up 6.09 % from last year same quarter Sales of Rs 17527.00 Crore Company reported net profit after tax of Rs 3146.00 Crore in latest quarter.


Investment Rationale
Defensive stock index is indicating that time correction is likely to end and the price is showing bullish momentum. HCL is likely to break falling channel resistance on the daily chart and resume its bull trend.

Promoter/FII Holdings
Promoters held 60.3 per cent stake in the company as of June 30, 2020, while FIIs held 25.6 per cent, DIIs held 10.1 and public and others 4 per cent.