{"id":1636,"date":"2021-01-18T11:14:26","date_gmt":"2021-01-18T11:14:26","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=1636"},"modified":"2021-01-18T11:14:26","modified_gmt":"2021-01-18T11:14:26","slug":"confident-of-leading-industry-performance-for-next-2-3-years-hcl-tech","status":"publish","type":"post","link":"http:\/\/www.assetmultiplier.co.in\/blog\/2021\/01\/18\/confident-of-leading-industry-performance-for-next-2-3-years-hcl-tech\/","title":{"rendered":"Confident of leading industry performance for next 2-3 years &#8211; HCL Tech"},"content":{"rendered":"<p><b>Update on Indian Equity Market:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Markets started the fresh week on a selling spree as Nifty closed the day 205 points lower at 14,228. The intensity of selling was such that only six out of 50 stocks closed the day in green led by UPL (6.3%), RELIANCE (2.1%), and TITAN (1.3%) while TATAMOTORS (-6.1%), TATASTEEL (-5.9%), and ONGC (-5.1%) led the losing pack. All the sectoral indices closed the day in red with METAL (-4.6%), PSU BANK (-3.1%), and PHARMA (-3.1%) bleeding the most.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Excerpts of an interview with Mr C. Vijayakumar, President &amp; CEO- HCL Technologies Ltd (HCL Tech) with CNBC TV18 dated 15<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> January 2021:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The company reported revenue growth of 3.5%, higher than the guidance. The margin for the quarter was also at a six-year high. Mr Vijayakumar said that the company has outperformed guidance for two quarters in a row led by a stupendous performance from products and platforms segment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">He said that DWS acquisition would contribute to 1% growth in 4QFY21E. The company has signed 13 deals across verticals. The company is positive about the outlook for FY22E.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The next five years are expected to be better than the past five years. The company is expected to lead the industry performance for the next 2-3 years.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">More work and revenue shifting of offshore and sales, general, and administrative (SGA) leverage contributed to superior margin performance in 1HFY21. Some of the expenses are expected to come back, but not at pre-COVID levels.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The company gave the salary increments to a large section of employees during 3QFY21. This has led to a headwind of 50 bps in margins. Further, the company is expected to give increments to seniors and a larger population which would be eroding about 80 bps from the margins.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Consensus Estimate: (Source: market screener)<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 The closing price of HCL Tech was \u20b9 978\/- as of 18-January-2021. It traded at 20x\/ 19x\/ 17x the consensus earnings estimate of \u20b9 49.3\/ 52.0\/ 58.0 for FY21E\/FY22E\/23E respectively.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 The Consensus price target of HCL Tech was \u20b9 1,073\/- as of 18th January 2021 which is 19x of FY23E EPS estimate of \u20b958.0\/-.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update on Indian Equity Market: Markets started the fresh week on a selling spree as Nifty closed the day 205 points lower at 14,228. The intensity of selling was such that only six out of 50 stocks closed the day in green led by UPL (6.3%), RELIANCE (2.1%), and TITAN (1.3%) while TATAMOTORS (-6.1%), TATASTEEL [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[405,87],"tags":[661,521],"_links":{"self":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1636"}],"collection":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1636"}],"version-history":[{"count":1,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1636\/revisions"}],"predecessor-version":[{"id":1637,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1636\/revisions\/1637"}],"wp:attachment":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1636"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}