Buy HCL Technologies, target price Rs 1130: Emkay Global

Emkay Global has buy call on HCL Technologies Ltd. with a target price of Rs 1130. The current market price of HCL Technologies Ltd. is Rs 987.05.

HCL Technologies Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 269616.20 Crore) operating in IT Software sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 19302.00 Crore, up 3.81 % from last quarter Sales of Rs 18594.00 Crore and up 6.44 % from last year same quarter Sales of Rs 18135.00 Crore. Company reported net profit after tax of Rs 3977.00 Crore in latest quarter.

Investment Rationale
The brokerage raises FY21/22/23E EPS by 8.4%/4.5%/4.1% on solid Q3 performance, better margins and uptick in demand environment. It maintains Buy with a revised TP of Rs 1,130 (earlier Rs 1,090) based on 20x FY23E EPS.

Promoter/FII Holdings
Promoters held 60.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 24.9 per cent, DIIs 10.6 per cent and public and others 4.1 per cent.