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This Stock Hit All-Time High On Monday Yet Brokerages See Further Upside

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There is clear optimism for IT stocks among analysts amid pick up in work-from-home culture due to the pandemic. Potential for an increase in spendings on IT support as businesses expand their online presence to reach customers has raised the earning estimates of these companies.

This Stock Hit All-Time High On Monday Yet Brokerages See Further Upside
 

Most recently, international brokerage firm Morgan Stanley has raised its target prices on top software exporters by 17-33 percent, which is still 11-14 percent away from their current prices.

One particular stock that has been in demand off-late after its mid-quarter update is HCL Technologies, which hit a record high of Rs 849.90 per share on Monday. As on 21 September, the IT player's stock surged 41 percent so far in 2020 but brokerages see further upside.

CLSA has a "buy" call on the stock with a target price of Rs 870 on the company's mid-quarter update that highlighted its strong order booking and healthy pipeline.

Brokerage firm BOBCAPS (of Bank of Baroda) also has a buy call with a price target of Rs 900 as it believes that HCL Technologies' digital capabilities, commitment towards expanding Mode-2 and 3 portfolios, and operational efficiencies have helped the company gain market share.

ICICI Direct has a buy call with price target of Rs 885. Motilal Oswal's buy call has a price target of Rs 930, while Sharekhan has a target of Rs 900.

The company also recently announced that its Australian unit is set to acquire DWS Limited, a leading Australian IT, business and management consulting business. Brokerage Sharekhan said that the acquisition of DWS will help further expand the company's digital offerings, especially in the APAC region.

Further, HCL is also planning to double its headcount in smaller cities of Nagpur, Madurai, Lucknow and Vijayawada and also relocating existing employees in the two-three year period, the Economic Times said.

Disclaimer

 

The article is purely informational and is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.

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