Buy HCL Technologies, target price Rs 517: Axis Securities
Axis Securities has given a buy rating to HCL Technologies with a target price of Rs 517 (an upside of 10 per cent over the CMP of Rs 470). The brokerage has termed the stock pick of the week and considers it the best high return research idea at this point in time. Though the ideal investment horizon for such ideas is 6-9 months, these also provide some profit-making opportunities to short-term investors.
The IT company had reported better than expected Q3FY20 numbers on both margin and revenue fronts. Strong revenue growth in Mode 3 business (72 per cent YoY) helps the company achieve higher growth momentum in longer term with advanced technologies. Better business matrix will help generate higher operating businesses even if there is pricing pressure across verticals. A better business matrix and large long-term contracts expected to make HCL Tech a promising investment compared to its Indian peers.
The share price of the company moved down by -3.00 per cent from its previous close of Rs 469.05. The last traded price is Rs 455. Incorporated in 1991, HCL Technologies has a market cap of Rs 127243.76 crore.