Major IT sector player HCLTech has faced a ransomware incident in an isolated cloud environment for one of HCLTech’s projects, CNBC-TV18 reported.
The company has further told the channel that there was “no impact observed on the overall network due to the ransomware incident”, adding that a “detailed investigation is underway in consultation with relevant stakeholders”.
Kotak downgrades HCLTech
Brokerage Kotak Institutional Equities on December 19 downgraded IT player HCL Technologies considering the recent rally in the stocks. The brokerage firm believes the rally limits further upside in select stocks in the IT sector.
HCL Tech’s share price has gained nearly 11 percent, while the Nifty IT and BSE IT indices have jumped about 8 percent in December so far.”We increase fair values by 9-20 percent on rollover and increase in multiples factoring in lower macro uncertainty. The strong rally limits further upside in select stocks. We cut the rating on HCL Tech to an ‘add’ from a ‘buy’, following a 13 percent stock price increase in the past month,” said Kotak.
Kotak underscored that IT players saw a significant decline in demand in FY24 due to the reluctance to commit to new programs given high economic uncertainty, reprioritisation of spending away from Covid-era priorities toward efficiencies and optimization, excess in-house hiring, and longer sales and ramp-up cycle in mega deals.
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Published: 20 Dec 2023, 08:17 AM IST