MOSL: Morning India (18/November/21): 1. HCL Technologies (Services strength to cushion any Product softness; Maintain Buy); 2. Oil & Gas (High tide to leave long lasting treasures)
MOrning India (18/November/21): 1. HCL Technologies (Services strength to cushion any Product softness; Maintain Buy); 2. Oil & Gas (High tide to leave long lasting treasures)
Today’s top research idea
HCL Technologies: Services strength to cushion any Product softness
- We expect the robust performance in HCL's Services business to continue. Sustainable demand momentum for Cloud and Digital Engineering benefits HCLT. Strong headcount additions and deal wins reflects the management's confidence on a sustainable growth momentum.
- We continue to see potential in HCLT's Products and Platforms business. While, the recent departure of the head of Products has elevated concerns. However, we don't see a meaningful risk from this event. Our sensitivity analysis suggests limited impact on EPS even in a bear case (4% decline in revenue for the Products and Platforms business in FY23E would lead to a 2.6% drag on our EPS estimate).
- Recent revision in payout policy and higher payout reflects a strategic shift to focus on organic growth. We maintain our Buy rating.
Piping hot news
Blackmoney in primary housing market down by 75-80% post demonetisation: Anarock
Housing brokerage firm Anarock on Wednesday said cash transactions in the primary residential market have reduced by at least 75-80 per cent since demonetisation of high-value currency was announced in late 2016.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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