HCL Tech drops 1.5% as Citi keeps sell, targets ₹1,110
HCL Technologies dropped 1.5% on Thursday, landing at ₹1,211 and becoming the biggest loser on both Nifty 50 and Nifty IT.
The stock is now down 26% for the year, much steeper than the Nifty 50's 10.3% decline.
Citi kept its "sell" rating, saying HCL Tech's price is still too high compared to rivals and set a target of ₹1,110, hinting at more downside ahead.
HCL Tech launches ₹185cr semiconductor lab
Citi pointed out that even with HCL Tech's progress in AI, Citi was more constructive on HCL Tech's data-centre opportunity and that the company could capture a larger share of value as a full-stack player.
On a brighter note, HCL Tech just launched a ₹185 crore Advanced Semiconductor Lab in Bengaluru to expand its capabilities in semiconductor testing and engineering, so while the stock struggles now, they're investing big for future tech growth.