HCL Technologies has delivered an interesting second quarter. Services business showed strong momentum growing sequentially by 5.2 percent in constant currency. However, the decline in products and platform revenue dragged down overall growth and impacted margins as well. The unchanged guidance for FY22 was also a fallout of the same.

The company is looking to recoup part of the revenue loss in products and platforms in Q3. Investors ought to note that the company has managed supply-side decently so far with the continuation of strong hiring, and has also seen robust order inflows.

HCL Tech is ideally placed to reap the benefits of cloud adoption and is also well equipped to deliver demand for new IT services. The demand scenario is stronger than ever, and the supply crunch although a point of bother has been handled well so far.

While products and platform business remain a joker in the pack. The undemanding valuation of the stock relative to peers offer a great margin of safety amid a strong technology upcycle, says moneycontrol.com’s Madhuchanda Dey.

Disclaimer:

The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

(Edited by : Abhishek Jha)