Almost after two years we had seen revenues growing in double digit for HCL Technologies in Q2 report card. So far HCL Technologies is the only company (Big Company) who had reported double digit revenue growth in its Q2 results.

Total income from operations jumped up by 14.09% to Rs 11,519.21 crore on YoY basis. Earnings before tax for the quarter stand at Rs 2,557.52 crore compare to Rs 2,212.86 crore in previous year quarter. Net profits had jumped up by 15.86% to Rs 2,015.60 crore on YoY basis.

This is how half yearly results look so far:

HCL Technologies 1H – 2017 %
Revenues 22,855.53 100%
EBT 5,165.98 22.60%
Net Profits 4,070.80 17.81%

 

They also came out with guidance for 2017, and expect revenues to grow in range of 12% – 14%. EBIT (Earnings before interest and taxes) are expected to be in range of 19.50% to 20.50%.

HCL Technologies is trading at Rs 837 per share today. Is it worth to buy more, hold or sell?

Analysts who follow this stock are expecting its earnings for 2017 in range of Rs 7,708 crore – Rs 8,456 crore. Looking at its half yearly results so far, it looks they will manage to achieve around higher band of those expectations. When we punch those expectations in our calculations for its intrinsic value, we get spectrum of Rs 633 – Rs 746 per share. It is also trading outside 2018 valuation spectrum that we calculated on those analysts forecast.

What we do when stock price is trading outside its intrinsic value spectrum was shared by us on sizing your stocks for portfolio post.

Aziz Dodhiya is the chief investment officer for the Valueoperations funds which operates in the Indian market as an FPI (Foreign Portfolio Investor). We do not offer any personal advice to buy or sell any stocks and the views that are shared by Aziz might not incline to your personal investment strategy and this is the reason we tell you to take professional advice before going ahead with our views.