Equal Weight on HCL Technologies, target price Rs 2,175: Axis Securities

Axis Securities has an equal weight call on HCL Technologies with a target price of Rs 2,175. The current market price of HCL Technologies is Rs 1,569.35.
HCL Tech, incorporated in 1991, is a Large Cap company with a market cap of Rs 425082.07 crore, operating in the IT Software sector.

HCL Technologies' key products/revenue segments include Software Development Charges and Computer Hardware & Software for the year ending 31-Mar-2024.


Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 30367.00 crore, up 3.58% from last quarter Total Income of Rs 29318.00 crore and up 5.38% from last year same quarter Total Income of Rs 28816.00 crore. The company has reported net profit after tax of Rs 4594 crore in the latest quarter.

The company?s top management includes Mr.Shiv Nadar, Ms.Bhavani Balasubramanian, Mr.R Srinivasan, Ms.Vanitha Narayanan, Mr.Simon John 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.Shikhar Malhotra, Mr.C Vijayakumar, Ms.Roshni Nadar Malhotra, Ms.Lee Fang Chew. Company has B S R & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 271 crore shares outstanding.

Investment Rationale
HCL Tech is well-positioned for long-term growth, supported by multiple long-term contracts with leading global brands. Strong revenue visibility reinforces confidence in its future business expansion. However, rising uncertainties in major economies and persistent supply-side constraints pose challenges to its growth prospects. Key risk is slowdown in North America may impact IT spend, creating an adverse impact on revenue growth.

Promoter/FII Holdings
Promoters held 60.81 per cent stake in the company as of 31-Dec-2024, while FIIs owned 19.38 per cent, DIIs 15.16 per cent.