Brokerages were positive on HCLTech after the company said Shiv Walia would be the company’s new CFO.
What Happened: HCLTech said on Monday that Shiv Walia will become CFO of the company from September 6, succeeding Prateek Aggarwal who held the post since 2018. The IT major said Aggarwal is leaving the company to pursue opportunities outside the company.
Walia started his career with HCLTech in 1993 and is currently the corporate vice president and global head of financial planning and analysis and business finance operations.
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Brokerage Views: JP Morgan gave the stock a "neutral" rating with a target price of ₹1,510. The CFO succession is surprising but should be smooth, the research firm said. JP Morgan expects the transition to be smooth and continuation of improved transparency and focus on shareholder returns.
Morgan Stanley maintained "overweight" call with a target price of ₹1,705. The research firm views the departure of the current CFO is a negative surprise. The company has generally seen low attrition rate at senior management level at the past, it added. However, Morgan Stanley also believes Walia's appointment will be a smooth transition.
Price Action: Shares of HCLTech were down 0.26% to ₹1,674.20 on Tuesday morning session.
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