Shares of HCL Tech were on the rise on Thursday after the IT major secured a contract and received a target price upgrade from a global brokerage.

What Happened: HCL Tech has inked a long-term managed public cloud services contract with German tech giant Siemens AG. The partnership aims to overhaul Siemens’ global IT infrastructure and aid with a cloud-based digital transformation.

Under the deal, HCL Tech will automate the public cloud environment while keeping with Siemens’ security norms. The IT company will migrate and manage Siemens’ infrastructure on Amazon Web Services and Azure, ensuring optimised, secure and scalable cloud resources.

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"Germany is a strategic market for HCLTech and our engagement with Siemens is testament to our continued growth in the region,” said Ashish K Gupta, chief growth officer of Europe and Africa at HCL.

HCLTech’s CloudSMART, an integrated consultancy and delivery platform that puts together top cloud offerings and capabilities, will be central to providing Siemens AG’s internal stakeholders with a consistent digital experience, he added.

Analyst’s Take: Prior to the deal, Nomura had given a favourable forecast for the Indian IT sector, including firms like Infosys, Wipro, TCS and HCL, expecting growth to pick up in the fiscal year ending 2025.

The brokerage raised HCL Tech’s target price to ₹1,220 from ₹1,090, maintaining a rating of “neutral”.

Price Action: HCL Tech’s share price was up 1.3% at ₹1,251.80 around noon on Thursday.

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Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this article.