Last updated: 17 Jul, 2020 | 09:18 am
HCL Tech has delivered a strong performance in Q1FY21, despite the challenge imposed by the pandemic. Q1FY21 was expected to be weak, as it would absorb the highest impact of the lockdown announced on March 24th. The company has managed to renew several large deals during the quarter.
'Going forward, HCL Tech expects a 1.5-2.5% increase in its revenue for the next three quarters in constant currency terms. Operating margins are likely to range between 19.5% and 20.5% for FY21.'. The firm is confident about its growth trajectory given a robust demand environment and a strong pipeline
The stock has gained about 68% from its 52-week low on March 19th. The shares are trading at a PE of 19 as compared to the sector PE of about 22.80 times.
Our VGQM model has a BUY rating on the stock.