Incorporated in 1991, HCL Technologies is engaged in providing a range of software, business process outsourcing and IT infrastructure services. The company provides technology service across various verticals including financial services, anufacturing (automotive, aerospace, hitech and semiconductors), telecom, retail and consumer packaged goods services. Geographically, the company has diverse presence across 32 countries including Americas, Europe, Asia Pacific, Middle East and Africa. Its global strategic alliances have some reputed names that includes Microsoft, Cisco, SAP, HP, etc. It has a strong workforce of more than 104,000 employees.
Valuation and View
Sustained momentum in large deal coupled with its competence in the IMS and ER&D space, will aid growth and provides scalability to its business. We expect revenue and Adj. PAT to grow at a CAGR of ~31% and ~22% over FY16-18E. We initiate coverage on the stock with a BUY rating with a target price of Rs. 828 (based on FY18E P/E of 14x), implies a potential upside of ~15% over the next 1 year.
Research Report HCL Technologies Ltd
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Why do these recommendations don’t have any Stop Loss price?
Hi Ram Mohan,
Fundamental recommendations are based on the analysis of the company’s balance sheet, profit & loss account and other financial aspects of the company. In fundamental analysis, the investment decision is based on the company’s performance, position in the industry, management governance etc
Stoploss is provided generally on short term and medium term technical analysis calls.
HCL Technologies Ltd is our fundamental recommendation and hence no stop loss is given. You have to decide the max pain you can endure in such cases and exit if the price falls below your threshold pain level.
Thanks
K.Karthick
Why do these recommendations don’t have any Stop Loss price?
Hi Ram Mohan,
Fundamental recommendations are based on the analysis of the company’s balance sheet, profit & loss account and other financial aspects of the company. In fundamental analysis, the investment decision is based on the company’s performance, position in the industry, management governance etc
Stoploss is provided generally on short term and medium term technical analysis calls.
HCL Technologies Ltd is our fundamental recommendation and hence no stop loss is given. You have to decide the max pain you can endure in such cases and exit if the price falls below your threshold pain level.
Thanks
K.Karthick