HCL Technologies hits 52-week high

The stock up 1.9% to Rs 871 on NSE ahead of board meeting on Monday to consider share buyback.

HCL Technologies hit a 52-week high of Rs 871, up 1.9% on the National Stock Exchange (NSE) ahead of board meeting on Monday to consider share buyback proposal.

In the past two trading sessions, the stock of the IT Company was up 3.3% after the company on Wednesday after market hours said that its board of directors will meet on Monday, March 20, 2017 to consider a share buyback proposal. In comparison, Nifty 50 index was up 0.79%, while Nifty IT index gain 1.7% during the period.

As on December 31, 2016, promoters and promoter group hold 60.34% share in the company, while public shareholding is at 39.66%, the shareholding pattern data suggests.

Angel Broking said, the stock is trading at attractive valuations and is factoring all the bad news. The brokerage firm maintained target price of Rs 1,000 on the stock.

Analyst at IIFL Institutional Equities believes that after a phase of weak execution in FY16, HCL Technologies has demonstrated its ability to regain traction in FY17, and it would continue to outperform peers in CY17.

“HCL Technologies’ performance over FY18 would be driven by four factors, acquisitions, as the company integrates and enhances revenue; big deals that would be the key for growth in engineering services; CEO change, which would result in more aggressive marketing; and DryICE, a highlight of the company’s future offerings displayed at the analyst meeting in 3QCY16,” the brokerage firm said in a report and maintain ‘buy’ rating on stock with 12-month target price of Rs 1,000.

At 01:13 pm; the stock was up 1.5% at Rs 868 as compared to a marginal 0.05% rise in the benchmark index. A combined 1.44 million shares changed hands on the counter on BSE and NSE so far.