HCL Tech shares fall 6% after Q4 results. Should you buy, sell or hold?

economictimes.indiatimes.com:

The consolidated revenue from operations was reported at Rs 28,499 crore, up 5.3% from Rs 27,059 crore in Q4FY23.

The company's board of directors recommended an interim dividend of Rs 18 per equity share for the financial year 2024-25. Its record date has been fixed on May 7, 2024.

Here’s what brokerages have to say:

Motilal Oswal

Higher exposure to the cloud, which comprises a larger share of non-discretionary spending, offers better resilience to its portfolio in the current context, with higher demand for cloud, network, security, and digital workplace services. Given its capabilities in the IMS and digital space, along with strategic partnerships and investments in cloud, we expect HCLT to emerge stronger on the back of healthy demand for these services in the medium term.

Motilal Oswal reiterated its ‘buy’ rating on the stock, with a target price of Rs 1,700, a 20% potential for upside.

Emkay Global

HCL Tech reported weaker-than-expected performance in Q4 while the back-ended FY25 guidance trajectory also disappointed. Revenue grew 0.4% QoQ in Q4, a little below our estimates. Services grew 3% CC QoQ, while Software declined 18.5%. EBITM dropped 220 bps QoQ to 17.6%. Net-new deal intake was healthy. FY25 revenue growth guidance also came in weaker than expected, factoring muted growth in H1, and no material improvement in discretionary spending.
Considering the above, Emkay Global downgraded the stock to an ‘add’ rating with a target price of Rs 1,600.

Nuvama

HCL Tech reported solid Q4FY24