By Aditya Raghunath
Investing.com -- HCL Technologies Ltd (NS:HCLT) shares are down over 2%, at Rs 979.8 as of this report, since it reported its numbers for Q1 FY22 yesterday. The company reported revenues of Rs 20,069 crore compared to Rs 19,642 core in the previous quarter. Net profit came in at Rs 3,214 crore, up 8.5% compared to the previous quarter’s profit of Rs 2,962 crore.
Both revenue and net profit were lower than analysts’ estimates. Analysts are divided on the stock’s future.
CLSA has maintained its buy recommendation on the stock with a target price of Rs 1,180. It said, “Deal wins in 1Q22 were healthy (in-line with the past eight-quarter average) with an all-time high pipeline. Thus, while we trim our FY22/FY23F EPS estimates by 2 percent/1 percent, we maintain our ‘buy’ rating on attractive risk-reward at a 17x FY23CL EPS.”
UBS has a sell rating with a target price of Rs 855 per share. It expects the misses of Q1 to continue.
Motilal Oswal Financial Services Ltd (NS:MOFS) has a buy target on the stock with a target of Rs 1,180. It said, “We continue to see a higher potential for the Products and Platforms vertical in the medium term and expect it to return to double-digit growth in FY23E.”