Resilient service business to drive incremental growth

Company
11 Mar 2024
5 Min read 
  • HCL Tech's service business has shown strong performance, with steady growth in the last two years.
  •  The ER&D service line has been resilient and is expected to rebound strongly.
  •  HCLT is well-positioned to benefit from the trend of ER&D outsourcing.
  •  The company is focusing on optimizing its employee pyramid and reducing subcontractor utilization to improve earnings.
  •  HCLT has a robust cash conversion rate and maintains a strong cash payout policy.
  •  The stock is currently trading at an attractive valuation compared to its peers.
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