HCL Tech declines on reports brokerage maintains reduce rating

HCL Technologies lost 0.63% to Rs 857.90 at 15:11 IST on BSE on reports a domestic brokerage has maintained reduce rating on the stock for a target price of Rs 840.

Meanwhile, the S&P Sensex was down 36.63 points or 0.12% at 29,482.11.

On the BSE, 1.58 lakh shares were traded on the counter so far as against the average daily volumes of 84,433 shares in the past one quarter. The stock had hit a high of Rs 874.60 and a low of Rs 853 so far during the day.

The stock had hit a 52-week high of Rs 879.15 on 20 March 2017 and a 52-week low of Rs 706.50 on 11 May 2016. The stock had underperformed the market over the past one month till 20 March 2017, advancing 2.57% compared with the Sensex's 2.99% rise. The scrip had also underperformed the market over the past one quarter, rising 4.14% as against the Sensex's 12.2% rise.

The large-cap company has equity capital of Rs 282.24 crore. Face value per share is Rs 2.

Meanwhile, HCL Technologies' board at its meeting held yesterday, 20 March 2017, approved buyback of up to 3.50 crore fully paid-up equity shares of the company at Rs 1000 per share, for an aggregate amount not exceeding Rs 3500 crore. The announcement was made after market hours yesterday, 20 March 2017.

The buyback price of Rs 1000 is at a premium of 15.83% to the stock's closing price of Rs 863.30 yesterday, 20 March 2017.

The buyback is proposed to be made from the shareholders of the company on a proportionate basis, through the tender offer route. The announcement was made after market hours yesterday, 20 March 2017.

Separately, HCL Technologies said that it has been chosen as the strategic IT services provider to the Volvo Ocean Race. HCL will be responsible for developing and delivering IT solutions for the 2017-18 edition of the race around the world. The Volvo Ocean Race held every three years witnesses the coming together of the best sailors across the world. The announcement was made after market hours yesterday, 20 March 2017.

HCL Technologies' consolidated net profit rose 2.3% to Rs 2062.04 crore on 2.56% growth in net sales to Rs 11814.20 crore in Q3 December 2016 over Q2 September 2016.

HCL Technologies is a leading global IT services company working with clients in the areas that impact and redefine the core of their businesses.

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