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.