Last Updated: April 21, 2023, 13:49 IST
HCL Technologies (HCL Tech) share worth jumped 2.79 per cent to Rs 1,066.45 at the moment after the IT firm noticed no adverse surprises. The shares had been buying and selling 1.91 per cent greater at Rs 1,057.35 on NSE at 9:20 am.
In Q4 FY23, the corporate’s internet revenue jumped 11 per cent on-year to Rs 3,983 crore, surpassing analyst estimates towards Rs 3,593 crore in the identical quarter final yr. The income got here in at Rs 26,606, up 18 per cent from Rs 22,597 crore throughout the identical quarter within the earlier yr. The document date has been mounted as April 28, 2023, for the cost of the interim dividend and the cost date has been set as May 9, 2023. The IT main additionally declared an interim dividend of Rs 18 per share, taking the whole dividend for the monetary yr 2023-24 to Rs 48 per share.
Should you purchase, maintain or promote HCL Tech shares?
Jefferies stated HCL Tech’s greenback revenues at $3.2 billion, which had been down 1.2 per cent in fixed foreign money phrases, had been in step with estimates and on the decrease finish of HCL Tech’s steering vary. EBIT margins at 18.2 per cent had been down 140 bps sequentially and missed estimates on account of greater direct and SG&A prices. However, revenue at Rs 3,980 crore was forward of estimates on account of greater than anticipated different earnings.
“Deal wins were down 8 per cent YoY to $2.1 billion but the management guidance of 6-8 per cent growth in FY24 is relatively healthy. Margin guidance of 18-19 per cent in FY24 versus FY23 margins of 18.2 per cent suggests limited margin improvement in FY24. Dividend payout at Rs 48/share remains strong,” Jefferies said while suggesting a target of Rs 1,050 on the stock.
Like Jefferies, Nomura India does not see much upside for the stock. This brokerage has lowered its FY24-25F EPS estimates for HCL Tech by 4 per cent, driven by expectations of lower revenue and margin and higher tax rates. Nomura has a target of Rs 1,100 on the stock against Rs 1,150 earlier.
“We maintain our revenue estimates (6.3 per cent in revenue growth in c/c) and EPS estimates, with a revised FV of Rs1,225 (Rs1,235 earlier). A more balanced portfolio mix with momentum in apps and decent positioning in vendor consolidation and cost take-out mandates can offset vulnerability in ERD and products portfolios, and can drive peer-matching growth,” stated analysts at Kotak Securities.
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