HCL Technologies, Infosys share price
Shares of information technology (IT) companies HCL Technologies and Infosys were under pressure and fell up to 3 per cent on the BSE in Tuesday’s intra-day trade. These stocks hit their respective 52-week lows today on growth concerns.
HCL Technologies dipped 3 per cent to ₹1,193 in intra-day trade. In the past one week, the stock price of the company has tanked 17 per cent.
Share price of Infosys was down nearly 2 per cent to ₹1,149.80 in intra-day trade. It slipped 12 per cent in the past one week. In the comparison, in the past five trading days, the BSE Sensex and the BSE IT index were down 2 per cent and 6 per cent, respectively.
Brokerages view on HCL Technologies, Infosys
Discretionary spending remains muted across sectors as clients focus on cost optimisation, resilience, and vendor consolidation, though this is partly offset by rising demand for AI-led productivity and automation initiatives. Financial Services and EURS are expected to drive growth in FY27, supported by healthy budgets, outsourcing, and structural demand tailwinds. In contrast, Manufacturing, Retail, and Communications remain cautious due to macro uncertainties, weak consumer demand, and margin pressures, analysts at Axis Securities said.
HCL Technologies faces near-term headwinds from soft FY27 revenue guidance (1-4 per cent constant currency (CC)), client-specific ramp-downs (~50bps drag), telecom discretionary cuts, and 2-3 per cent AI deflation impact, with limited margin expansion (EBIT 17.5-18.5 per cent) as currency benefits are reinvested.
Despite a muted growth outlook, the stock has corrected meaningfully, making valuations attractive. The brokerage firm Mirae Asset Sharekhan maintain a 'Buy' rating, given the resilient portfolio, strong AI momentum, healthy cash flows, and high shareholder payouts, with a price target of ₹1,380.
Earnings visibility remains muted in the near term, and the growth premium versus large-cap peers has narrowed. However, the stock has corrected meaningfully, now trading at more reasonable multiples making valuations attractive, backed by a resilient infra-heavy and ER&D mix, accelerating advanced AI momentum (annualized ~$620mn), strong free cash flows, and a consistent high-payout policy, the brokerage firm said in the Q4 result update.
HCL Technology’s softer revenue guide vs expectation and AI deflation impact of 3-5 per cent will likely raise concerns on the overall industry growth for FY27. Analysts at JM Financial Institutional Securities lowered target multiple to 18x (vs 19x earlier) and cut FY27-28E estimates by 1-2 per cent given lower growth visibility. The brokerage firm downgraded the stock to 'REDUCE' with revised target price of ₹1,350 (vs ₹1,440 earlier).
Meanwhile, Infosys continues to demonstrate strong deal wins and increasing traction in AI-led transformation, which supports long-term growth prospects. However, near-term revenue visibility remains modest amid macro uncertainties and uneven demand across key verticals. Therefore, analysts at Axis Securities recommend a 'HOLD' rating on Infosys and value at 18x FY28E earnings with a target price of ₹1,330/share.
According to analysts at ICICI Securities, weak conversion and slower rampups are impacting near-term growth of Infosys, with FY26 organic growth at 2.4 per cent CC and FY27 guidance at just 1.5–3.5 per cent CC. Growth in Financial Services and ER&U, along with vendor consolidation opportunities, provide some stability as management expects better FY27 vs FY26 in these segments.
However, persistent weakness in discretionary-heavy verticals (Retail, Manufacturing, Communications), flattish volumes & rising competitive intensity constrain near-term earnings visibility. The brokerage firm expects US$ revenue to grow at CAGR of 3.5 per cent over FY26-28E.
“Going ahead headwinds from wage hikes, acquisition amortisation (~70 bps) and AI investments shall limit margin upsides. Reinvestment of productivity gains into sales, talent and AI capabilities limits incremental upside further, indicating margins are likely to remain range-bound rather than structurally expanding. FY27 EBIT margin guidance stood at 20 per cent–22 per cent, unchanged. We bake in EBIT margins of 20.5 per cent in both FY27E and FY28E,” the brokerage firm said.
Given conservative guidance and weak outlook, ICICI Securities maintain 'HOLD' rating on Infosys, valuing it at 17x P/E on FY28E EPS, at a target price of ₹1,330. =========================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.