HCL Tech Shares Fall After JPMorgan Puts Negative Catalyst on Watch


HCL Tech, an Indian multinational information technology services company, experienced a 1 percent dip in its stock exchanges on Wednesday after investment banking firm JPMorgan included it on its negative catalyst watch list. The pessimistic opinion was in part a result of the organization expecting it to deliver dismal numbers with their impending Q4FY23 results that are projected to be published on April 20th.

As displeasing as the announcement was, ICICI Securities, which has a hold rating for the company, foresees an even more disappointing outcome. They predict the company’s Q4FY23 will culminate in their weakest quarter out of the group they are tracking, with a 1.9 percent decline in constant currency QoQ. Asian Market Securities share similar sentiments, forecasting a 1.6 percent decrease in the same metric and discounts the past nine months of glimmers of hope – specifically a 20% YoY revenue increase in Q3FY23.

Alongside this underlying wake of negativity surrounding the projection, the market capitalization of HCL has dropped by 8% in the period of one year; yet, it has seen an overall 14% increase in the past half-year.

Taking into account these fallouts, brokerage firms display divergence in their view of the company. Bloomberg data currently records 26 “buy” ratings, 16 “hold” ratings, and 4 “sell” ratings, with a cumulative average one-year target goal of Rs 1,172.27.

Meanwhile, industry experts feel confident in backing HCL Tech as one of the protagonists of large-cap stocks under their aegis. They do hold that it is appealing in its current pricing when considering its valuations at 16xFY25.

Beyond the numbers and analysis, HCL Tech is best known for their comprehensive IT solutions across various veritable industries. Their services range from consulting and integrating, to application development, support, enterprise solutions, and technical solutions, to name a few. Such enabling empowers their customers to embrace the power of digital transformation and win the future.