⭐HCL Technologies⭐
💡Over the last six months, both the global and domestic IT indexes have been significantly corrected. The Nifty IT and Nasdaq (America's major IT indexes) are currently 25% lower than their 52-week highs.
⭐ About Company ⭐
HCL Technologies provides IT, ER&D, and product services to the BFSI, retail, health, telecommunications, manufacturing, media, and hi-tech industries.
🌱Key growth drivers🌱
⚈ The total IT spend by 2025 is expected to be $1,607 billion, led by Infrastructure Implementation & Managed Services ($377 billion), followed by Application Implementation & Managed Services ($369 billion), Consulting ($312 billion), IaaS ($245 billion), Business Process Services ($234 billion), and Hardware Support ($70 billion), providing HCL with enormous growth opportunities.
⚈ Cloud is a key focus for the company, and it anticipates strong growth in IT services from Cloud and app modernization.
🌱Growth Opportunities in different verticals:
-> Cloud Transformation – A $917 billion market with a 20 % medium-term CAGR.
-> App and data modernization - Market size of $507 billion and is growing at a medium-term CAGR of 23%.
-> Digital Workplace- Market size of $54 bn growing at a medium-term CAGR of 11%
-> Products & Platforms - Market size of $362 bn growing at a medium-term CAGR of 16%
⚈ HCL has maintained its revenue and EBIT margin guidance of 12 %-14 %/18 % -20 %, citing better offshore and near-shore mix, profitable revenue mix, better pricing, and increased realization.
⚈ The management said Digital Engineering constitutes ~30% of its ER&D vertical and is growing rapidly.
📈 Technical Analysis:
⚈ The stock is trading between 50 & 100 EMA on weekly charts.
⚈ On weekly charts, the stock has been in a downtrend for the past five months and is currently following a downward sloping trendline.
⚈ Decisive breakout of this trendline will lead to a sharp uptrend in near future.
⚈ The stock may re-test the demand zone of Rs 950-Rs 1002 and may consolidate in the Rs 100 range for some time.
⚈ Major support for the stock is placed at Rs 896.
⭐ Aggressive investors can begin accumulating the stock from current levels.
⭐ Others can accumulate the stock in the range of Rs 950 - Rs 1002.
🎯 Target 1: Rs 1215 (Timeframe: 2-3 months)
🎯 Target 2: Rs 1360 (Timeframe: 4-6 months)
🚫Stop Loss: Closing below Rs 900(Monthly basis)
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