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HCLTech shares get upgrades and downgrades as analysts divided post Q1 resultsOut of the 47 analysts who have coverage on HCLTech, 18 analysts each have a "buy" and "sell" rating on the stock, while 11 of them have a "sell" rating.By Hormaz Fatakia   July 15, 2025, 7:56:54 AM IST (Published)2 Min ReadAnalysts having coverage on HCL Technologies Ltd. are divided over the company's prospects after its June quarter results. While some have upgraded the stock, some have issued downgrades, expecting some near-term downside.

HCLTech revised its margin guidance for the full-year down to 17% to 18% from 18% to 19% earlier. On the flip side the company raised the lower end of its full-year revenue growth guidance to 3% to 5% from 2% to 5% earlier.

Brokerage firm Jefferies has upgraded the stock to "buy" from its earlier rating of "hold", and raised its price target higher by 30% to ₹1,890 from ₹1,450 earlier. The revised price target implies a potential upside of 15% from Monday's closing levels.

However, as a result of the trimming of its margin guidance, Jefferies has cut HCLTech's Earnings Per Share (EPS) estimates by 0% to 2% over financial year 2026-2028 to reflect the same. The brokerage expects HCLTech's EPS to grow at a Compounded Annual Growth Rate (CAGR) of 10% during this period.

"The company's investments should support superior growth and premium valuations," Jefferies' note said.

On the flip side, Nuvama has downgraded HCLTech to "hold" from its earlier rating of "buy" and cut its price target to ₹1,630 from ₹1,700 per share.

Nuvama has also cut its EPS estimates for HCLTech by 5.7% and 3.1% respectively over financial year 2026 and 2027.

The other downgrade that has come from HCLTech is from JPMorgan, which has downgraded the stock to "neutral" from its earlier recommendation of "overweight". JPMorgan has also cut its price target to ₹1,700 from ₹1,800 earlier.

Citi has maintained its "neutral" rating on the stock and has also marginally cut its price target to ₹1,650 from ₹1,690 earlier. It also has a short-term downside view open on the stock.

On the sector, Citi worries about increased market fragmentation and competitive intensity, risk of AI-led productivity in existing businesses, continuing growth in GCCs and macro uncertainties impacting spends.

Nomura has retained its "buy" recommendation on the stock with a marginal cut to its price target to ₹1,810 from ₹1,840 earlier. It expects margins to reverse in financial year 2027 and as a result, it has also cut its EPS estimates over the next two years by 2% to 5%.

Out of the 47 analysts who have coverage on the stock, 18 analysts each have a "buy" and "sell" rating on the stock, while 11 of them have a "sell" rating.

Shares of HCLTech had ended 1.5% lower on Monday ahead of the results announcement at ₹1,613.5. The stock has declined 6.5% in the last one month.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsHCL TechHCL Tech Q1 resultHCL Tech shareshcltechshare market today