On 31 August 2021, Tuesday, HCL Technologies shares recorded a new high of Rs. 1,193.15, surging 3% on the BSE during intraday trade. This rise in stock price materialised immediately after the company announced that it would be allocating $1.25 million to Series A preferred stock of Austin GIS via its subsidiary, HCL Bermuda Limited.
This investment would enable HCL to make the most of the growth opportunity present in the 5G RAN industries and the Internet of Things (IoT).
That said, in the past month, HCL Technologies stock price has jumped by 16%. Here, we’ll be looking into some of the reasons behind this impressive performance.
What Were the Driving Factors For HCL Technologies?
Here were some of the key catalysts for shares of HCL Technologies:
- HCL Technologies has partnered with one of the top reinsurers in the world, Munich Re. By collaborating, these two companies will develop a next-gen digital workplace for over 16,000 employees across more than 35 countries.
- Before the deal with Munich Re, it announced a 5-year partnership with a Germany-based chemical company, Wacker Chemie AG. This IT transformation services deal aims to set up a modernised workplace and ensure quality service delivery.
Furthermore, HCL Technologies has very low exposure to verticals that are under pressure right now. These segments include travel, retail, hospitality, energy, and more. In comparison to its peers, this company has higher exposure to the life sciences and financial services sectors.
Should One Invest in HCL Technologies?
For investors who are looking to invest in HCL technologies, it’s vital to consider various aspects, such as the competitive strengths. Let’s take a look at them.
- The company has managed to establish favourable relationships with reputed brands.
- HCL technologies have ensured consistent growth in terms of revenue.
- It has a diverse product portfolio. Its offerings include laptops, desktops, tablets, and more.
- HCL offers a wide range of services, which include EAS, BPO, ERS, and more.
- This company has established a strong presence in major countries like the U.S., Europe, Japan, and more.
With HCL Technologies stock delivering strong returns for shareholders in the past month, there appears to be a lot of interest among investors. Taking into account the company’s ability in the IMS segment, along with the investments in cloud technology, there appears to be tremendous growth potential. However, besides the strengths of the company, investors must consider other aspects, such as weaknesses, opportunities, and financials, before investing.
Frequently Asked Questions
- What is the debt-equity ratio of HCL Technologies?
The debt-equity ratio of HCL Technologies is 0.01.
- What were the net sales of HCL Technologies for March 2021?
The net sales reported by HCL Technologies for March 2021 were Rs. 35,673 crores.