HCL Tech share price zooms 3% on 5-year deal with MKS Instruments

Shares of HCL Technologies rose 3 per cent to hit an all-time high of Rs 1,315.1 on BSE after the company announced a five-year, digital transformation deal with MKS Instruments Inc., a global provider of instruments, systems, subsystems and solutions for advanced manufacturing processes, to improve performance, productivity and speed to market.   "HCL will drive digital and cloud-enabled transformation for MKS Instruments through AI/ML-led automation, enhanced user experience with end-to-end Infrastructure services, digital workplace services and IT transformation. MKS Instruments’ employees in nearly 60 countries will have the advantage of using HCL’s vast network of global delivery centers and its wide breadth of technology solutions, including its cutting edge AI and automation frameworks and tools," the company said.   The stock opened 0.92 per cent higher at Rs 1,287.15 against the previous close of Rs 1,275.35. With a market capitalisation of Rs 3,49,370.81 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The large-cap stock has risen 36 per cent since the beginning of this year and has delivered 61 per cent return in the last 12 months.   “MKS Instruments looks forward to partnering with HCL to enhance its end-user experience by automating operations and migrating us toward a hybrid cloud journey,” said Connie Flynn, Chief Information Officer, MKS Instruments. “The solutions set forth will support MKS during a time of increased growth and digital acceleration.”   “We are excited to partner with MKS to deliver a technology-driven approach to fulfill its business goals and digital transformation roadmap,” said Ajay Bahl, Executive Vice President, HCL Technologies. “End users will benefit from a seamless digital experience with access to smarter and better processes and systems.”   According to MarketsMojo, the company has strong long-term fundamental strength with an average Return on Equity (ROE) of 22.94% and has a low Debt to Equity ratio (avg) at -0.16 times. The technical trend has improved from Mildly Bullish on July 14, 2021, and has generated 30.25% returns since then. The stock is technically in a Bullish range and multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV. However, it noted that the valuation is expensive right now.   Recently, HCL Technologies (HCL) and Finastra, the largest pure-play software vendor that serves the entire financial services industry, have expanded their partnership to drive digital transformation across South Korea and Taiwan.   As part of the engagement, HCL will use its next-generation digital transformation and service capabilities to bring two of Finastra's strategic products, Fusion Cash Management and Fusion Summit, to the financial services ecosystem in the region. Fusion Cash Management powers the digital corporate banking experience for financial institutions around the world while Fusion Summit offers a functionally rich core trading solution for capital markets.