Is HCL Technologies on your radar? Know what to do as the company’s Q3 earnings beat estimates

Investor guide for investing in HCL Technologies post its Q3 results

HCL Technologies posted statements for Q3

Listed companies post their financial reports after every financial quarter. Recently, HCL Technologies posted its statements for the third quarter of the financial year 2022-23. The reports beat industry estimates delivering higher-than-expected earnings.

Here’s a snippet of the company’s performance after Q3FY23 –

  • 20% YoY (Year-on-Year) increase in the net profit from Rs.3442 crores to Rs.4096 crores. Industry analysts estimated an increase of 10.6% to Rs.3796 crores.
  • 19.61% YoY jump in the consolidated revenue from operations from Rs.22,321 crores to Rs.26,700 crores. The estimates stood at a 16.6% jump to Rs.26,026 crores.
  • In terms of constant currency, the revenue jumped 5% QoQ (Quarter-on-Quarter) and 13.1% YoY.

As HCL Technologies delivered impressive returns, the focus shifted to its stock performance. For investors, it is beneficial to know how the stock is expected to perform so that they can maximize their returns while cutting down on possible losses.

Related - Check out five monopoly stocks in the Indian market

So, according to industry experts, here’s how the HCL Technologies stock is expected to perform in the coming period –

Expert analysis of HCL Technologies stock

Here’s what experts observed about the company –

  • The stock has been rated differently by different experts and broking houses. The rating includes ‘outperform’, ‘neutral,’ ‘market perform’, and ‘underperform.’
  • The target price is also varied across experts. It ranges from Rs.880 per unit to Rs.1200.
  • HCL Software has an impressive seasonal performance which helped in clocking high financial metrics.
  • The company won many deals, which will boost its future potential
  • The company’s margins are poised to expand in the next financial year
  • Some experts also believe that the growth in the last quarter will remain sluggish. They also observed that the leading metrics were negative and that the company had shallow hiring and limited deal signing.

What should investors do?

Knowledge and analysis are the two important tools that help you make the right decision. So, study the company's financial reports when making your investment decision. If you are investing for a short-term period, there might be volatility in stock prices. In such cases, you should monitor the stock prices daily to take the buy or sell call.

On the other hand, short-term volatility will not be a major concern for long-term investors. You can hold onto your investment over the long run and see returns as the company grows, and so does its stock.

So, assess your investment horizon and risk appetite and then make an informed choice.

Related - Here's a beginner's guide to stock markets

Listed companies post their financial reports after every financial quarter. Recently, HCL Technologies posted its statements for the third quarter of the financial year 2022-23. The reports beat industry estimates delivering higher-than-expected earnings.

Here’s a snippet of the company’s performance after Q3FY23 –

  • 20% YoY (Year-on-Year) increase in the net profit from Rs.3442 crores to Rs.4096 crores. Industry analysts estimated an increase of 10.6% to Rs.3796 crores.
  • 19.61% YoY jump in the consolidated revenue from operations from Rs.22,321 crores to Rs.26,700 crores. The estimates stood at a 16.6% jump to Rs.26,026 crores.
  • In terms of constant currency, the revenue jumped 5% QoQ (Quarter-on-Quarter) and 13.1% YoY.

As HCL Technologies delivered impressive returns, the focus shifted to its stock performance. For investors, it is beneficial to know how the stock is expected to perform so that they can maximize their returns while cutting down on possible losses.

Related - Check out five monopoly stocks in the Indian market

So, according to industry experts, here’s how the HCL Technologies stock is expected to perform in the coming period –

Expert analysis of HCL Technologies stock

Here’s what experts observed about the company –

  • The stock has been rated differently by different experts and broking houses. The rating includes ‘outperform’, ‘neutral,’ ‘market perform’, and ‘underperform.’
  • The target price is also varied across experts. It ranges from Rs.880 per unit to Rs.1200.
  • HCL Software has an impressive seasonal performance which helped in clocking high financial metrics.
  • The company won many deals, which will boost its future potential
  • The company’s margins are poised to expand in the next financial year
  • Some experts also believe that the growth in the last quarter will remain sluggish. They also observed that the leading metrics were negative and that the company had shallow hiring and limited deal signing.

What should investors do?

Knowledge and analysis are the two important tools that help you make the right decision. So, study the company's financial reports when making your investment decision. If you are investing for a short-term period, there might be volatility in stock prices. In such cases, you should monitor the stock prices daily to take the buy or sell call.

On the other hand, short-term volatility will not be a major concern for long-term investors. You can hold onto your investment over the long run and see returns as the company grows, and so does its stock.

So, assess your investment horizon and risk appetite and then make an informed choice.

Related - Here's a beginner's guide to stock markets

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