Information Technology giant HCL Technologies saw its share price gaining 12% on Monday morning as the stock hit a fresh 52-week high.
HCL Technologies has seen good booking momentum this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals.
Information Technology giant HCL Technologies saw its share price gaining 12% on Monday morning as the stock hit a fresh 52-week high. The shares of HCL Technologies were seeing growing interest from investors after the company informed stock exchanges about its “meaningfully better” revenue and operating margin for the second quarter of this fiscal year. IT companies have so far fared better than others and is expected to continue on that path with growing demand for digital solutions. The stock price has gained over 97% since March this year when the equity markets witnessed a massive sell-off.
“We have seen strong execution during the quarter to date, and continue to execute to the plan this month,” HCL Technologies said in a market filing on Monday morning, as a part of its Mid Quarter Update. The Noida based IT giant said that revenue growth for the current quarter is expected to exceed 3.5% on-quarter basis in constant currency. This, it says, has been enabled by the broad based momentum across all service lines, verticals and geographies. HCL Technologies’ revenue growth slowed down in the previous quarter 8.5% on-quarter.
HCL Technologies, which recently saw its long-time Chairman Shiv Nadar step down from the post to become the Managing Director of the company, has seen good booking momentum this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals. Analysts have been upbeat on the IT stocks with expectations of a boost to digital solutions demand boosting their views. “Deal pipeline also remains strong across service lines, verticals and geographies. HCL Tech remains one of our top picks in the IT space given cheap valuations and we maintain our buy rating on the stock,” said Jyoti Roy – DVP- Equity Strategist, Angel Broking.
With the shares surging and a strong business outlook, HCL Technologies has shrugged-off any fears that stood around the transition at the top management. Brokerage firms like Motilal Oswal, JM Financials, and HDFC Securities have a ‘Buy’ call on the scrip. However, with the recent jump in share price the stock has left the target prices pinned on it behind by quite a margin.