Kolkata: HCL Technologies, one of the major Information Technology companies from India and a major exporter, has generated enthusiasm among brokerages despite an overarching uncertainty in the export market led by US President Donald Trump’s tariff whims. Major Indian brokerage Motilal Oswal has expressed measured optimism about this stock in a report this week.
The report states, “deal ramp-ups and wins provide leverage right from 1Q”. It describes the FY26 guidance issued by the company management as “encouraging” and thinks it “pegs HCLT at the top of the growth pyramid”. “The lower end of the guidance (1.2% organic growth) assumes a deterioration in the demand environment, whereas the upper end of the guidance assumes a couple of large deal closures in the pipeline (which should close in 1Q as per management). We believe this guidance is encouraging. While putting the fears of a washout FY26 to rest, it implies HCLT would outperform both TCS and Infosys at the upper end of its guidance range,” mentioned Motilal Oswal.
Target price of HCL Tech
With that energy in guidance, Motilal Oswal set a target price of Rs 1,800, which is about an increase of 22% from the level of Rs 1,480 when the report was drawn up. On the morning of Thursday, April 24, the stock was trading at Rs 1,585.00, down Rs 9.00 (or 0.56%).By the way, for the stock the 52-wk high was at Rs 2,012.20, while the 52-wk low was Rs 1,235.00.
The brokerage also highlighted the dela contract value (TC) of HCL Tech. “Deal TCV remained robust, with net bookings reaching the second-highest level in the past 16 quarters — surpassed only by the mega deal-led TCV in 2QFY24. The pipeline continues to hover near all-time highs, with GenAI and AI capabilities embedded in every engagement,” Motilal Oswal stated in the report.
The financials
The brokerage expects the company to deliver 18.5% EBIT margin in the current financial year. It also stated that it would improve in FY27 as growth improves. In its report Motilal Oswal stated: HCL Technologies reported 4QFY25 revenue of $3.4 b, down 0.8% Quarter on Quarter and 2.9% Year on Year in constant currency vs our estimate of 0.6% QoQ decline. EBIT margins came in at 18% vs our estimate of 17.6%. New deal TCV stood at USD3b (up 43% QoQ) in 4QFY25. For FY26, HCLT provided revenue growth guidance of 2-5% YoY in CC (similar for Services). This exceeds expectations and implies a 1.3% CQGR over the next four quarters at the upper end. For FY25, revenue/EBIT/PAT grew 6.5%/7.0%/10.8% YoY in INR terms. We expect revenue/EBIT/PAT to grow by 8.2%/10.6%/1.4% YoY in 1QFY26.
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HCL Technologies is the third largest information technology exporter in India. Brokerage Motilal Oswal has stated that major deals could give the company an edge right from the April-June quarter in FY26. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
