HCL Tech Shares Plummet 15% in Three Days, Market Cap Drops by ₹59,000 Crore
HCL Tech shares give Rs 59,000 crore shock in 3 days as stock down 15%. More pain ahead?
The Economic TimesImage: The Economic Times
HCL Technologies, India's third-largest software services firm, has seen its shares fall 15% over three days, erasing nearly ₹59,000 crore in market capitalization. The decline follows disappointing earnings and a bleak revenue outlook, prompting multiple brokerages to downgrade their ratings and price targets for the company.
- 01HCL Tech shares fell 15% in three days, losing ₹59,000 crore in market cap.
- 02The company's FY27 revenue growth forecast is only 1% to 4%.
- 03Brokerages are downgrading HCL Tech shares, with Jefferies setting a target of ₹1,165.
- 04Weak performance was attributed to budget cuts from US telecom clients.
- 05CLSA remains optimistic with an Outperform rating but acknowledges disappointing results.
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Shares of HCL Technologies (HCL Tech), India's third-largest software services company, have plummeted 15% over three trading sessions, resulting in a staggering ₹59,000 crore loss in market capitalization. The decline follows the company's disappointing March quarter earnings and a subdued growth outlook, projecting only 1% to 4% revenue growth for FY27. HCL Tech's growth forecast for FY26 was also missed, with actual growth reported at 3.9%, below the expected 4.0% to 4.5% range. Major brokerages have reacted sharply, with Jefferies downgrading its rating to Underperform and setting a target price of ₹1,165, while JPMorgan and Citi have also lowered their target prices. The downturn is attributed to unexpected budget cuts from key US telecom clients and the cancellation of several SAP projects. Despite the negative sentiment, CLSA has maintained an Outperform rating, though it noted the quarter's disappointing performance across various metrics.
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The drop in HCL Tech's share price could affect investor confidence and impact the company's ability to attract new investments.
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