HCLTech Stock: Buy, Sell, or Hold? Here’s what brokerages are saying

HCLTech recently announced its Q3 FY25 results, showcasing steady growth in revenue and profitability. However, the mixed guidance for FY25 has left investors uncertain about the company’s trajectory. Here’s a summary of what major brokerages are recommending for HCLTech stock post-Q3 earnings.

Brokerage Views on HCLTech:

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  1. Jefferies:
    Jefferies has maintained a Hold rating on HCLTech with a target price of ₹2,060/share, slightly above the current market price (CMP: ₹1,975). The brokerage highlighted the company’s consistent EBIT margin of 19.5% but remains cautious about growth in the near term.
  2. Nomura:
    Nomura continues to recommend a Buy on HCLTech, setting a target price of ₹2,000/share. It believes the company is well-positioned to deliver stable services revenue growth in FY25, supported by its robust deal pipeline.
  3. Citi:
    Citi has assigned a Neutral rating with a target price of ₹1,920/share, suggesting limited upside potential from current levels. The brokerage cited cautious optimism about the company’s long-term strategy but flagged potential headwinds in the near term.
  4. CLSA:
    CLSA retains a Hold rating on the stock, with a target price of ₹1,882/share. It highlighted the stability in HCLTech’s operating performance but expressed concerns about the subdued guidance for revenue growth.
  5. Bernstein:
    Bernstein rated HCLTech as Market Perform, maintaining a target price of ₹2,000/share. It noted the company’s strong margin management but remains wary of the broader IT sector challenges.
  6. Morgan Stanley (MS):
    MS has retained its Equal Weight rating on the stock, with a target price of ₹1,970/share. The brokerage mentioned that the current valuation reflects the company’s stable performance but sees limited upside due to soft growth expectations.
  7. Nuvama:
    Nuvama downgraded HCLTech to Hold, while raising its target price to ₹2,150/share from ₹2,125. It acknowledged the company’s consistent operational performance but downgraded the stock due to valuation concerns after the recent rally.

Current Market Price and Analysis:

At the CMP of ₹1,975/share, HCLTech’s stock is trading near or above most brokerage target prices, indicating limited room for significant upside. The company’s FY25 guidance of 4.5%-5% revenue growth and EBIT margins of 18%-19% has been viewed cautiously by analysts.

Disclaimer: The information provided in this article is based on publicly available reports and brokerage analyses. It is not intended as investment advice. Readers are advised to conduct their own research or consult with a financial advisor before making any investment decisions. Stock market investments are subject to market risks, and past performance is not indicative of future results. Neither the author nor the publication takes responsibility for any losses arising from investment decisions based on this article.