Morgan Stanley Sees This IT Stock Surging 22% On Back Of ₹1872 Cr Deal

IT major HCLTechnologies announced it acquired assets from Hewlett Packard Enterprise for $225 million (around ₹1,872.30 crore). 

What Happened: HCTechnologies said it acquired certain assets of the Communications Technology Group (CTG) from Hewlett Packard Enterprise. The acquisition includes intellectual property, engineering and R&D talent and client relationships with global communication service providers (CSPs). 

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Morgan Stanley maintained its "overweight" view on the scrip with a target price of ₹1650. The investment bank says the transaction is relatively large and strategic, but the financial impact won't be significant for the company, as reported by ET.

According to the brokerage's estimates, the annual revenue from the asset could be around  $275 million – $350 million. (around ₹2288 crore- ₹2912 crore). According to the brokerage, the asset would add around 2% to revenue growth while diluting the margins by 30-40 basis points (bps) and Earnings Per Share (EPS) by less than 1% for FY26. 

Kotak Securities also maintained its “add” rating for the stock with a price target of ₹1,600. The brokerage said that the acquisitions provide access to key telecom clients & increase capability in ERD. “Clients include 20 of the top 30 global telcos in the markets of Japan, Europe, Americas & APAC,” the domestic brokerage firm added.

In its March quarter results, HCLTech's net profits rose marginally to ₹3,995 crore from ₹3,981 crore in the previous year. Revenue increased by 7% YoY ₹28,499 crore in the quarter. The company's EBIT margin increased by 48 basis points YoY to 18.1%.   

Price Action: Shares of HCLTech were trading down 0.13% at ₹1,351.85 on Friday's session. 

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