Shares of IT services company HCL Technologies declined by 1.66 percent. 1,046.15 a piece in Wednesday’s trade ahead of the firm’s March quarter earnings yesterday. The average price target of the stock is 1,177.08, according to publicly available data with the trendline suggesting a potential upside of 12.39 per cent on the counter.
The IT major is expected to underperform Income For its fourth quarter (Q4FY23) ending March 31, 2023, its performance could be impacted due to seasonal weakness and decline in software segment (Product & Platform-P&P).
Analysts expect the company’s profit as well as Ebit margin to decline in the last quarter. Constant currency (CC) revenue could also decline sequentially (QoQ) by 1-2 per cent, while profit decline could be seen in the range of 4-9 per cent.
The firm’s Ebit margin is likely to decline to 18.1-18.6 per cent on a QoQ basis. It was 19.6 per cent in Q3FY23.
How to trade HCL Tech stock?
“HCL Technologies has fallen below the 200DMA level Closer to the important support area of 1,030 and 1,010 level from where some can expect a pullback and a correction on the bias,” said Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher.
In terms of trading, Parekh said, “One can buy and accumulate stocks near the specified support area and expect an upward move Keeping a strict stop loss at 1,110 -1,120 levels 1,000 levels.”
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