The stock is trading at ttm P/E multiple of 18.9 times which is lower than the 10 years average P/E of 20.41 times.
HCL Technologies is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age. Its technology products and services are built on four decades of innovation, with a world-renowned management philosophy, a strong culture of invention and risk-taking, and a relentless focus on customer relationships.
Through its worldwide network of R&D facilities and co-innovation labs, global delivery capabilities, and over 208,000+ ‘Ideapreneurs’ across 52 countries, HCL delivers holistic services across industry verticals to leading enterprises, including 250 of the Fortune 500 and 650 of the Global 2000.
Revenue Mix: HCL offers its services and products through three business units: IT and Business Services (ITBS) ~72.1%, Engineering and R&D Services (ERS) ~15.8% and Products & Platforms (P&P) ~12.1%.
Diversified customer base: HCL delivers holistic services in various industry verticals, categorized as Financial Services, Manufacturing, Technology & Services, Telecom & Media, Retail & CPG, Life Sciences & Healthcare and Public Services.
Debt Free Balance sheet: The Company is fully debt free. As of March 31, 2022, the company has cash reserve of more than Rs. 12600 cr.
Strong financial growth: Its sales growth is 16.96% & net profits growth is 20% of last 10 years.
Promoter/FII Holdings: Promoters held 60.72% stake in the company as of 31-Mar-2022, while FIIs owned 18.97%, DIIs 14.68%.
Q1FY23 Earning Key Highlights
Valuation & View: At the CMP of Rs. 915, the stock is trading at ttm P/E multiple of 18.9 times which is lower than the 10 years average P/E of 20.41 times, which looks attractive for investment purposes with the target price of Rs 1250 within 12 to 18 months perspective.
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