HCL TECH SHARE PRICE TARGET ACHIEVED- LearnTwoTrade

Hello and welcome back to one more interesting article wherein we’ll discuss the HCL tech share price target which was analyzed earlier and has achieved the target predicted by us in a span of 22 trading sessions.  

Let’s do a root cause analysis on how did HCL tech share price target was achieved. 

BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT 

HCL Technologies has partnered with MetaMedia, a cloud-based distribution platform which is dedicated towards cinemas, drive-ins and other out of home venues. The intention of MetaMedia for this partnership is to accelerate its global expansion. 

In US, the company is planning to hire 12,000 employees in the next 5 years. 

Intel Network Builders Winner’s Circle ecosystem program has named HCL Technologies as their Titanium level partner which is a great sign for the company as it will increase the credibility. 

The company has named Santhosh Jayaram as the Global head of Sustainability for maintaining the organization’s commitment towards elevating sustainability as the key element of their business. 

The company has started a new facility in Cinnamon (Sri Lanka) wherein 4,000 employees can be accommodated and this has paved a way for the company to expand its business in Sri Lanka as well. 

HCL has emerged as a global IoT player in warehouse management. 

HCL Tech CEO C Vijayakumar is quite optimistic about the products and platform business and is sure that the company will build robust products and services in the next financial year as well (FY’ 22). 

In Q2 and Q3 of 2021, the company has bagged strong deals with 13 large service deals and one product win which’ll ensure strong revenue growth in the upcoming future. The company posted 38% YoY growth and gained $ 2.25 bn due to new deals. 

Fabiano Funari has been apointed as the country head for Brazil by HCL Tech. 

For overseas expansion, the company has signed a pact with South Korean software company HANCOM Inc to share advanced software technology solutions. 

FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT 

QUARTERLY RESULTS:     

Figures in Rs. Crores 

Quarterly Results	Dec 2018	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Sales	15699	15990	16427	17527	18135	18587	17842	18594	19302	19641	20068	20655
Expenses	12067	12396	12857	13268	13506	13729	13085	13476	13678	15092	15006	15633
Operating Profit	3632	3594	3570	4259	4629	4858	4757	5118	5624	4549	5062	5022
OPM %	0.23	0.22	0.22	0.24	0.26	0.26	0.27	0.28	0.29	0.23	0.25	0.24
Other Income	134	200	183	102	157	147	295	199	189	244	255	240
Interest	55	69	87	136	158	124	125	80	147	159	89	83
Depreciation	541	545	735	747	942	996	1065	1092	1187	1267	1128	1078
Profit before tax	3170	3180	2931	3478	3686	3885	3862	4145	4479	3367	4100	4101
Tax %	0.18	0.2	0.24	0.22	0.2	0.18	0.24	0.24	0.11	0.67	0.22	0.2
Net Profit	2605	2550	2230	2711	2944	3172	2931	3143	3969	1102	3205	3259
EPS in Rs	9.6	9.4	8.22	9.99	10.85	11.69	10.8	11.58	14.63	4.06	11.81	12.01

For the quarter ended 30-09-2021, the company reported a sale of ₹ 20,655 Cr which is an increase of 10% from the sales registered in the year ago period. 

Expense has increased from the previous quarter and the sales number indicate that the company is using this expense for increasing the sales. 

In quarter ended 30-09-21, the net profit has increased which is a great symbol of growth. 

BALANCE SHEET: 

Reserves have increased exponentially and there is a great interest shown by the investors in HCL tech share price target. 

In the quarter ended 30-09-21, the company has reduced borrowing to ₹ 6,265 Cr which is constantly reducing from the past 2 quarters. 

Figures in Rs. Crores 

Balance Sheet	Jun 2010	Jun 2011	Jun 2012	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Sep 2021
Share Capital	136	138	139	139	140	281	282	285	278	271	543	543	543
Reserves	6151	7514	9696	13020	19402	23943	27109	32664	36108	41095	50724	59370	60133
Borrowings	2724	2187	2179	1044	1018	648	1090	582	557	4195	7986	6501	6265
Other Liabilities	3592	4061	6323	8196	9419	10373	10860	12231	11046	12788	23566	19633	18980
Total Liabilities	12603	13901	18338	22399	29980	35245	39341	45762	47989	58349	82819	86047	85921
Fixed Assets	4840	5246	6453	6753	7444	8275	9716	15235	18753	22888	37490	37145	35853
CWIP	609	556	578	494	531	552	611	448	320	235	400	312	217
Investments	832	738	673	713	662	869	698	1306	2660	2305	7066	6862	7032
Other Assets	6322	7362	10633	14440	21343	25548	28315	28773	26256	32921	37863	41728	42819
Total Assets	12603	13901	18338	22399	29980	35245	39341	45762	47989	58349	82819	86047	85921

SHARE HOLDING SYNOPSIS 

Share Holding	Dec 2018	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Promoters	60	60	60	60	59.98	60.33	60.33	60.33	60.33	60.33	60.33	60.33
FIIs	28.28	28.74	28.63	27.96	27.66	26.42	25.62	24.92	24.92	24.14	23.22	22.3
DIIs	8.21	7.67	7.98	8.63	8.42	9.11	10.01	10.62	10.25	10.54	11.34	12.47
Government	0.01	0.01	0.01	0.01	0.04	0.04	0.04	0.04	0.04	0.02	0.02	0.02
Public	3.5	3.58	3.38	3.4	3.9	4.1	4	4.09	4.46	4.97	5.09	4.88

Promoters have maintained their position in this stock with a whopping 60.33%. 

FIIs as well as retail investors have reduced their stake in this company while DIIs are the buyers into this stock. 

Now, let’s deep dive into the technicalities of HCL tech share price target. 

CHART PATTERN ANALYSIS 

In the previous analysis, we did highlight the formation of the reverse head and shoulder pattern.

Click here for previous analysis on HCL tech share price target. 

HCL tech share price target was achieved on 07^th Sept 2021 with a total target achievement of 30%. 

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