Market will be keenly watching out of the outcome of the US Fed and commentary thereafter. Auto stocks will be in focus as auto sales numbers for the month of October will be in focus. HCL Tech is the pick of the week. The company reported better than expected Q2 FY20 numbers, both of margin and revenue growth.
Constant currency growth came grew 6% QoQ and 18% YoY at Rs 17,528 crore while net profit also showed robust sequential growth of 19% at Rs 2651 crore. Operating margins improved by 156 bps at 23.4% aided by higher margins from IBM business. HCL Tech revised its revenue growth guidance to 15-17% for FY20 backed by strong deal wins. Management commentary on deal wins was positive with 15 transformational deals won during Q2 FY20. HCL Tech completed acquisitions of 7 products from IBM. We have a buy with target of Rs 1272 per share, said Pankaj Bobade, Head of Fundamental Research, Axis Securities.
