We're all set for a new experience. To visit the old Ventura website, click here.
Ventura Wealth Clients

HCL Technologies surges towards Rs. 5 trillion market cap

Stocks
< 1 min Read Sep 3, 2024
Share

HCL Technologies, a leading global technology firm, has been making significant strides in the stock market. The company's shares recently hit a new high of Rs 1,805, driven by a positive business outlook.

Strong performance and market capitalisation

In the past six trading days, HCL Tech's stock has rallied nearly 9%, following the extension of its agreement with Xerox to drive innovation with AI and digital engineering. The stock has rebounded 46% from its June-month low, and its market capitalisation is rapidly approaching the Rs 5 trillion mark.

Factors driving the surge

  • Positive business outlook: HCL Tech's strong performance is attributed to favorable market opportunities across industries for technology companies.

  • Strategic priorities: Enterprises are focusing on modernisation, cloud, engineering, FinOps, AI, GenAI, digital, and sustainability, which aligns with HCL Tech's offerings.

  • Enterprise IT spending: Despite cautious optimism, overall enterprise IT spending is expected to remain healthy, with a focus on cost optimisation and vendor consolidation.

  • Growth in the IT services market: The IT services market is projected to grow at 6.1% globally over the next year.

Analyst recommendation

Nuvama Institutional Equities has maintained a 'Buy' rating on HCL Tech, with a target price of Rs 2,020. The brokerage firm believes that HCL Tech's higher growth than peers and improved capital allocation policy will be sustained in FY25.

Conclusion

HCL Technologies' strong performance and positive outlook suggest that it is well-positioned for continued growth. Investors who are bullish on the company's prospects and believe in the potential of investing in stocks may consider adding HCL Tech to their portfolios.