HCL Technologies share price jumped 2.79% to Rs 1,066.45 today after the IT company declared an interim dividend of Rs 18 per share, taking the total dividend for the financial year 2023-24 to Rs 48 per share. In Q4 FY23, the company’s net profit jumped 11% on-year to Rs 3,983 crore, surpassing analyst estimates against Rs 3,593 crore in the same quarter last year. The revenue came in at Rs 26,606, up 18% from Rs 22,597 crore during the same quarter in the previous year. The record date has been fixed as April 28, 2023, for the payment of the interim dividend and the payment date has been set as May 9, 2023.
“After two major misses in TCS and Infosys, the street was expecting another disappointment from HCL tech. The company however surprised on the positive side as the Q4 results came out in line with expectations. There was a mild miss in revenue however, the profits came out a little better than expected aided by growth in other income. Overall, the result has not been a shocker like its leading IT peers and thus the street would appreciate it,” said Veer Trivedi, Research Analyst, at SAMCO Securities.
Kotak: Buy – Fair Value: Rs 1225
“We maintain our revenue estimates (6.3% in revenue growth in c/c) and EPS estimates, with a revised FV of Rs1,225 (Rs1,235 earlier). A more balanced portfolio mix with momentum in apps and decent positioning in vendor consolidation and cost take-out mandates can offset vulnerability in ERD and products portfolios, and can drive peer-matching growth,” said analysts at Kotak Securities.
Sharekhan: Buy
“HCL Tech guided for FY24E CC US$ sales growth guidance of 6-8%, better than our expectation considering Infosys guidance of 4-7%. Deal bookings are showing slight moderation while client additions stayed strong during Q4. Net headcount addition improved with decent fresher addition. The stock offers reasonable risk-reward for investment, we have a BUY rating on the stock,” said Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas.