HCL Tech share price targets by CLSA, JPMorgan, Morgan Stanley, Citi, UBS, HSBC, Nomura, Investec, 12 others

HCL Technologies Ltd reported better-than-expected June quarter results but retained its FY27 revenue growth and margin guidance. Analysts said the company's decision not to raise its growth outlook suggests lingering challenges in its core business. With HCL Tech's growth premium over Tata Consultancy Services Ltd (TCS) and Infosys Ltd narrowing, some analysts believe the stock's current valuation is difficult to justify.

Among foreign brokerages, JPMorgan maintained an 'Underweight' rating on HCL Tech and raised its target price to Rs 1,060 from Rs 1,000. Jefferies retained its 'Underperform' rating but cut its target price to Rs 1,070 from Rs 1,165. Citi maintained a 'Sell' rating and lowered its target price to Rs 1,040 from Rs 1,135. HSBC retained its 'Buy' rating with an unchanged target price of Rs 1,255.

Investec raised its target price to Rs 1,370 from Rs 1,350, while CLSA lowered its target price to Rs 1,191 from Rs 1,202. UBS maintained a 'Buy' rating and increased its target price to Rs 1,390 from Rs 1,355. Nomura raised its target price to Rs 1,290 from Rs 1,250, while Morgan Stanley increased its target price to Rs 1,152 from Rs 1,105.

Nomura said no change in macroeconomic conditions since Q4FY26 and continued headwinds in two accounts prompted HCL to keep the guidance unchanged. "We raise our FY27-28F EPS estimates by 2-3 per cent to factor in the 1Q results and JasperSoft (unlisted) acquisition closure," it said. 

Among domestic brokerages, Antique stock suggested a target of Rs 1,225, Systematix Rs 1,180, Ambit Capital Rs 1,045, Avendus Spark Rs 1,270, Choice Equity Rs 1,330, 360 ONE Capital Rs 1,200, Axis Capital Rs 1,450, DAM Capital 1,390 and  Dolat Capital Rs 1,400.

HCLT has retained its FY27 revenue growth guidance of 1–4 per cent YoY in constant currency (CC) terms CC and services growth guidance of 1.5–4.5 per cent YoY CC, implying 1 per cent compounded quarterly growth rate (CQGR) at the midpoint. HCL Tech announced plans to invest up to Rs 3500 crore to build a full-stack AI data center business, scalable to 50MW capacity. This follows its $150 million investment in Sarvam, India's sovereign LLM play. 

"We believe HCLT is investing ahead of the market to build the next-generation AI stack," MOFSL said.

The brokerage said it continued to like HCLT's all-weather portfolio. Its investments in Sarvam and the AI data center business strengthen its long-term AI positioning. We have kept our estimates unchanged and reiterate our Buy rating with a revised target of Rs 1,450 based on 18x FY28E EPS (earlier 16x). We maintain HCLT as our preferred pick in the large-cap space," it said.

For HCL Tech net new deal wins stood at $2.4 billion. This was the highest-ever Q1 bookings. This excludes the recently announced mega deal with a European Global F-50 company, which is anticipated to start contributing FY28 onwards. The management said HCL Tech has completed the Jaspersoft acquisition, which is likely to contribute a quarterly run rate of $10–15 million from Q2FY27, not included in the guidance. Advanced AI revenue grew 10.3 per cent QoQ (up 62.1 per cent YoY) to $172 million. 
 
"HCL Tech currently trades at ~17x FY27 PE – a chunky premium to TCS/Infosys (14x). Its narrowing growth differential, now coupled with data-centre investment risk, make the risk-reward unattractive. We see limited upside potential from current levels," Nuvama said.