HCL Tech hits all-time high on better Q2 earnings: What should investors do?

HCLTechnologies shares in Tuesday's session (October 15) started on a strong footing as the IT company reported its Q2 performance after market hours on the previous day. Just ahead of its results. the stock ended 0.89 per cent at Rs 1,856 per share. 

The company in trade today marked a fresh 52-week high of Rs 1,881 per share, which is also the stock's all-time high price. Last at around 9:31 am traded with gains of over 1 per cent at Rs 1,878.15. 

For the period under review, the company reported a consolidated net profit of Rs 4,235 crore, marking a sequential decline of 0.5 per cent and exceeding analysts' expectations. The IT consulting firm staged a strong performance on all fronts, with increasing profitability and a hike in the lower end of its FY25 revenue growth guidance. 

The IT consulting firm registered revenue of Rs 28,862 crore for the second quarter of the current financial year, up 2.9 per cent over the April-June period, according to a regulatory filing. 

Should you buy, sell or hold HCL Tech shares?

Morgan Stanley has an equalweight rating on the stock with the target raised to Rs 1,970. According to the brokerage, the company posted better-than-expected F2Q25 and constructive comments on improving demand resulted in EPS upgrade. The consistent industry-leading revenue growth should keep premium multiples intact, said the brokerage. 

Jefferies, meanwhile, has continued with its 'hold' call on the counter with the raised target. HCL's Q2 operating performance came in better, with both services as well as products business surprising positively. The management sees discretionary spending environment improving at margin. With stock trading at 28x 1-year forward, see limited scope for re-rating. 

HSBC has maintained an 'hold' call with a target at Rs 1,700. The brokerage has posted a good quarter with beat on both topline & margins; deal wins were stable in 2Q. Furthermore, the valuations at the company restricts near-term re-rating.