HCL Tech share: HCL Technologies’ results for Q1FY25 exceeded market expectations, following Tata Consultancy Services’ (TCS) announcement of better-than-expected Q1 results 2024. Therefore, when trading on the Indian stock market begins on Monday, HCL Tech shares are anticipated to stay in the spotlight.
Stock market experts claim that despite a decline in EBITDA margins, HCL Tech’s Q1FY25 results exceeded market expectations. The telecom vertical provided excellent support for the company’s profitability in the first quarter of the current fiscal year. Nonetheless, there remain significant reservations regarding the growth forecast for FY25 and growing attrition.
Results for HCL Tech Q1FY25 evaluation
Manish Chowdhry, Head of Research at StoxBox, commenting on HCL Tech’s Q1 results 2024, stated: “While the company’s Q1FY25 results exceeded all projections, worries about its growth in FY25 still exist. The net profit benefited from a one-time gain from the State Street joint venture disposal, which will also have a big effect on Q2 topline. Robust expansion in the telecom and retail sectors contributed to the topline health by offsetting the downturn in the utilities and healthcare sectors. The software segment’s strong performance, which defied seasonality expectations and supported the top line, was another factor.
Because of an emphasis on increasing efficiency, the EBIT margin decrease caused by rising onsite expenses was less than anticipated. But in a situation where resources are limited, the rise in attrition presents questions. Since State Street’s offshore will undoubtedly have an effect in Q2, we anticipate growth to begin appearing in the data in H2. A StoxBox expert warned that “the management’s comments on hiring plans, investments in GenAI partnerships and solutions, ramp up of new deals, and visibility going forward are key things to watch out for.”
Target price for HCL Tech shares
“HCL Tech share has been on an upward trajectory, currently trading at a market price (CMP) of ₹1560.20,” stated Sumeet Bagadia, Executive Director at Choice Broking, “expecting significant upside in HCL Tech shares after Q1 results 2024.” This implies that there is a lot of optimism for the stock. HCL Tech’s current trading position above its 20-day, 50-day, and 200-day moving averages is especially positive. Investors could take heart from this indication of a steady and prolonged rally since the stock price is in line with several moving averages.
“There’s also a minor resistance level around 1575 that, if broken, might lead to much more upward movement. This suggests that there is room for the stock to rise. With the Relative Strength Index (RSI) at 75.29 and trending upward, there may be more purchases being made. But if the price drops below 1488, investors should be cautious and keep an eye on it since this could reverse the positive view, Bagadia continued.
Following the Q1FY25 results, Bagadia made the following recommendation to stock market investors regarding HCL Tech shares: “We recommend buying HCL Tech shares at CMP of ₹1560.20 levels.” It can also be added with a stop loss of ₹1488 and a goal of ₹1680 on declines around ₹1530.”
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(Disclaimer: The opinions expressed here are not affiliated with Businessuncover; rather, they represent the opinions of certain analysts or broking firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.)
