Shares of HCL Technologies rose over 2% in Wednesday’s session after brokerage firm CLSA upgraded the stock to ‘outperform’ and set a target price of Rs 1,524.
The stock gained 2.71% to Rs 1,377.90, up Rs 36.30 from its previous close of Rs 1,341.60. During the session, it traded in a range of Rs 1,366.50 to Rs 1,399.70, taking its market capitalization to approximately Rs 3.73 lakh crore. The company currently trades at a price-to-earnings ratio of 22.69 with a dividend yield of 3.92%.
CLSA noted that recent concerns around the impact of artificial intelligence on IT services and potential delays in discretionary demand recovery due to the Middle East conflict have positioned HCL Technologies relatively well among peers.
The brokerage highlighted that the company has been proactive in its AI strategy, aligning management initiatives across the organisation and building partnerships with key technology players, including OpenAI. CLSA believes HCL is ahead of its Indian and global peers by around 6–9 months in leveraging AI-driven opportunities.
Additionally, with uncertainty around the duration and impact of the Middle East conflict, global IT demand may shift towards cost optimisation rather than discretionary spending, a trend that could benefit HCL Technologies.
CLSA expects HCL Technologies to be the fastest-growing large-cap IT services company globally for the fourth consecutive year by FY27, with projected organic constant currency growth of 4.8%.
As of Wednesday’s session, the stock remained in focus following the brokerage upgrade.
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