Domestic brokerage and research firm Axis Securities has recommended buy on IT stocks Cyient, HCL Tech and L&T Technologies following its fourth quarter (Q4FY22) results on expectations of a better outlook for IT companies.
L&T Technologies (LTTS) reported a healthy set of results in Q4FY22. Management is confident of achieving sustainable operating margins going forward as this factors in the strong cost optimization efforts undertaken by the Company as well as its strong execution capabilities. The buy rating of Axis Securities is Shares of L&T Tech with a target price of 5,100 per.
“We believe Cyient is back with new business opportunities backed by better top customer accounts and a strong deal pipeline. In addition, with depreciation in INR, lower travel costs and lower on-site expenses, the company’s EBITDA Margins are likely to expand in the near term,” said the brokerage recommending buy on the stock with a price target 1,000 per share.
HCL Technologies The deal continued to win strong, showing strong growth of 6% on a sequential basis (QoQ). The brokerage’s note said that this includes 6 transformational deals in the Services segment, with a TCV of $2.2 billion, and 4 large transformational deals in the Products segment, with a TCV of $54 million.
Management has given 12%-14% revenue growth guidance for FY23 and EBIT margin stands at 18%-20%. Axis Securities also has a buying stance Shares of HCL Tech With 1,345 target price after its Q4 results.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.