HCL Tech Shares (NSE: HCLTECH): HCL Tech shares jumped 5 percent during trading on Monday, July 15. This rise in the company’s shares has come after its June quarter results.
Many brokerage companies have increased the target price of this stock after this result. The brokerage says that HCL Tech’s June quarter results were stable and as per expectations.
He said that to accelerate growth in the future, the company needs to constantly get new deals and execute them efficiently.
On NSE, HCL Tech shares were trading 4.3 percent higher at Rs 1,627. With this, it became the top gainer of the Nifty-50 index today.
In the past 6 months, the value of shares owned by the company has increased by just 2.2 percent. The Nifty 50 index has returned more than 11 percent during the same period.
Many Brokerage firms have increased their targets on HCL Tech to Rs 1,720 and Rs 1,650 and 1,545 respectively.
They said that the company’s net profit was higher than their estimates, which is the main reason behind increasing the target.
Despite the growth in the target price, Citi has maintained a neutral rating for the stock.
The brokerage said that the company’s ER&D segment revenue declined 3.5 percent quarter-on-quarter.
At the same time, the total contract value was $ 1.96 billion, which is less than expected. Brokerage has also given a ‘Hold’ rating on HCL Tech.
While another Brokerage has maintained a ‘Neutral’ stance and said that the management’s cautious comments and targets indicate ongoing challenges for the company.
HCL Tech released the results for the first quarter of the current fiscal year on the 12th of June. The company announced that its net profit grew by 6.7 percent every quarter, to Rs 4,257 crore.
However, the company’s revenue declined by 1.6 percent every quarter to Rs 28,057 crore.
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