HCLTech Shares Downgraded To 'Reduce' By Dolat Capital Despite Q3 Beat — Here's Why

Despite HCLTech's strong fundamentals, including accelerating deal conversions and resilient margins, Dolat Capital sees near-term upside as capped given the sharp run-up in the stock..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..Dolat Capital Report.Dolat Captial has revised its stance on HCLTech to ‘Reduce’, citing limited upside after the recent rally of over 10% since Q2. While the brokerage acknowledges that HCLTech’s guidance remains industry-leading, the slip in PAT during Q3 is attributed to a one-time impact, which is expected to normalize going forward.Despite strong fundamentals, including accelerating deal conversions and resilient margins, Dolat Capital sees near-term upside as capped given the sharp run-up in the stock..HCLTech Ltd. reported revenue of $3,793 million, up 4.2% QoQ constant currency (beat). The IT/ ER&D/software business recorded positive sequential movement of 1.5%/ 3.1%/28% QoQ CC. Operating profit margin grew by 118bps to 18.6% (including 80 bps restructuring impact but excluding one-time labour code impact ~Rs 960 crore). Management narrowed its overall growth guidance to 4–4.5% CC, while raising service biz revenue growth guidance to 4.75–5.25% CC although it sees no notable shifts from prior trends. Ebit margin guidance retained at 17–18%.Factoring positive Q3 and solid total contract value wins, the brokerage slightly modifies FY26/27/28E earnings by -0.1/+1.4%/+1.5%. Recent price movements (10%+ since Q2) limit upside, thus Dolat Capital revises to ‘Reduce’ rating with a target price of Rs 1,800, (valued at 24x of FY28E earnings per share). .Click on the attachment to read the full report:.TCS Q3 Review: 'Buy' Says Yes Securities Post Inline Results — Check Target Price, Potential Upside.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 Shares Downgraded To 'Reduce' By Dolat Capital Despite Q3 Beat — Here's Why

Factoring positive Q3 and solid total contract value wins, the brokerage slightly modifies FY26/27/28E earnings by -0.1/+1.4%/+1.5%.

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