Shares of HCLTech gained 4% on Monday morning as the company's first-quarter results met expectations.

What Happened: HCLTech reported a 20% year on year jump in net profit to ₹4,257 crore in the June quarter. Its revenue rose 6.69% from the previous year to ₹28,057 crore, exceeding analyst expectations of ₹28,050 crore in revenue and ₹3,830 crore in profit.

The company expects revenue growth to be around 3% and 5% year-on-year in constant currency (CC) for the year ending March 2025. The company's new deal wins stood at $1.96 billion (around ₹16,375 crore), up 25% year on year. The company anticipates growth momentum in its core business to continue as deals it won over the last few quarters are executed. 

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Brokerage Views: Nuvama Institutional Equities maintained a "buy" call and hiked its target price to ₹1,800 from ₹1,700. It said the IT major's sharp re-rating has been due to higher growth than its peers and rectification of its capital allocation policy and these fundamentals will sustain in FY25 as well.

Nuvama added that the stock’s 5% discount to Infosys as compared to the historical discount of 15%-20% is justified by its growth in FY24 and higher growth expectations for FY25. 

Motilal Oswal also reiterated its "buy" call with a target price of ₹1,850. The brokerage said the company's outperformance compared to Infosys in the last three years and its improvement in free cash flow metrics warrant a premium to Infosys. The company's revenue and profit numbers beat the research firm's expectations.

Price Action: Shares of HCLTech gained 4.3% to ₹1,627.35 on Monday morning. 

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