HCLTech: Q2 margin passes, growth fails; hold, no add

HCLTech [][***** trades at Rs 1,412.81 at 9:40 AM IST today on StockGro, against Rs 1,419.33 on the previous close. That is 20 percent above my Rs 1,176.90 exit, and 6.5 percent above the Rs 1,327 NSE close on 14 October, the session before my last post. My 15 October post read the Q2 FY27 result against the gate I set on 11 October. Constant-currency growth was 2.6 percent, below the 4 percent bar. The EBIT margin was 18.2 percent, above the 16.9 percent bar. Net profit was Rs 5,132 crore, up 21.2 percent, and the interim dividend was Rs 12 a share, with a record date of 16 October and payment scheduled for 26 October. The sources also disagree on the full-year guide: Kotak Neo reports the 2.5 to 4 percent range as retained, while my 11 October post used 1 to 4 percent. That conflict is still open. My view: hold, not a fresh entry. The growth test failed, so fresh money stays out. Holders keep the position on the exit alone. The price has moved well above the levels I set, and that alone is not a reason to add. My exit is a close below Rs 1,176.90, the 8 October NSE close, unchanged. Nothing in the last fortnight triggers it. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.