HCLTech Can Rally 29% Says Motilal Oswal, Reiterates 'Buy' On The Stock — Here's Why

While the brokerage have tempered growth expectations due to a slower exit in Q3 and 4Q, HCLTech’s differentiated positioning in hi-tech and semiconductors, along with its low reliance on pass-through revenues, bodes well for the medium term..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.We met with Mr. Shiv Walia, the CFO of HCLTech Ltd., and left with a positive view on the company's growth quality despite the near-term uncertainties. Management highlighted that deal durations are shortening, with larger deals being broken into smaller chunks, though the pipeline remains strong, and deal momentum is improving. While we have tempered growth expectations due to a slower exit in Q3 and 4Q, HCLTech’s differentiated positioning in hi-tech and semiconductors, along with its low reliance on pass-through revenues, bodes well for the medium term. The HP CTG acquisition reinforces its telecom presence, diversifying exposure beyond North America and enhancing its capabilities in network solutions. On margins, Project Ascend is driving efficiencies, helping to offset cost pressures, and while shorter deal durations may affect predictability, HCLTech remains focused on reinvesting in growth. We now value HCLTech at 28 times FY27E EPS (versus 30x earlier) owing to a slower-than-expected discretionary pick-up across the industry. We reiterate our Buy rating with a target price of Rs 2,200. .Click on the attachment to read the full report:.Quality Power Raises Rs 386 Crore From Anchor Investors Ahead Of IPO Launch.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HCLTech Can Rally 29% Says Motilal Oswal, Reiterates 'Buy' On The Stock — Here's Why

Motilal Oswal values HCLTech at 28x FY27E EPS (vs 30x earlier) owing to a slower-than-expected discretionary pickup across the industry, maintains Buy rating with a target price of Rs 2,200.

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