HCL Tech 4th IT firm to breach ~3-trillion m-cap

HCL Technologies' market capitalisation touched ~3 trillion for the first time on Friday, making it the fourth Indian information technology (IT) services firm to achieve this milestone, after Tata Consultancy Services (TCS), Infosys and Wipro.

Shares of HCL Tech hit a record high of ~1,123.90 on the BSE, up 2.5 per cent in intraday trade, before closing the session at ~1,119.70.

At Friday’s close and with ~3.04-trillion market-cap, HCL Tech ranked 13th in the overall market-cap rankings, just below after Wipro (~3.37 trillion), the BSE data shows.

The HCL Tech stock, which lagged most of its larger peers over the past year, is looking to catch up in the recent past. Over the past month, it has outperformed the market, gaining 15 per cent, as the management reiterated its double-digit dollar revenue growth guidance and Ebit (earnings before interest and tax) margin band of 1921 per cent for 202122 (FY22). In comparison, the S&P BSE Sensex is up 4.6 per cent during the same period, while TCS and Infosys are up 8-10 per cent. Wipro continues to outperform and is up 17 per cent in a month.

HCL Tech is the third-largest Indian IT services company by revenue, after TCS and Infosys.

The company has a strong globally diversified presence and provides comprehensive IT services to an established customer base. It has strong expertise in engineering and R&D services, and its end customers are spread across industry segments.

According to HDFC Securities, HCL Tech has a good track record in client acquisitions and is engaging in vendor consolidation opportunities, of late. It signed 58 new large deals — led by companies in sectors, such as financial services, life sciences and health care, telecommunication, manufacturing, and technology — in FY21 and won eight large services deals and four significant product deals in Q1FY22.