HCL Technologies share price jumps over 2% after Q2 results; Should you buy, sell or hold? Here’s what analysts suggest

livemint.com:

₹1,258.00 apiece on the BSE. HCL Technologies, the third largest IT services company in India, reported 8.55% QoQ growth in Q2FY24 net profit at ₹3,833 crore. Its consolidated revenue for the quarter rose 1.4% QoQ to ₹26,672 crore.

In constant currency (CC) terms, revenue grew 1% QoQ. The IT major cut its YoY organic revenue growth guidance in CC terms for FY24 to 4-5% from 6-8% previously. Read here: HCL Tech Q2 Results: Net profit rises 9.8% to ₹3,832 crore, revenue up 8% YoY; dividend declared The company also declared an interim dividend of ₹12 per equity share of ₹2 each for fiscal 2023-24.

Here’s what brokerages have to say on HCL Technologies Q2 results and stock: Morgan Stanley said the cut in revenue guidance by HCL Tech was a negative but largely anticipated. Investors’ key focus would be on the company's ability to deliver a better H2 as compared to muted outlook shared by peers. Despite cutting estimates, the brokerage expects HCL Tech’s revenue and EBIT growth in FY24 to be better than larger peers.

It has an ‘Overweight’ call on the stock and cut the target price to ₹1,400 per share from ₹1,450 earlier. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) According to Kotak Institutional Equities, HCL Technologies reported muted albeit in-line revenue growth. Its EBIT margin was significantly ahead of its estimate.

“On expected lines, HCLT cut FY2024E organic revenue growth guidance to 4-5% from 6-8%. Even the revised guidance seems aggressive at the upper end of the band. Record TCV of US$4 bn will ramp up in 2HFY24 and provide revenue acceleration.