Q1 Earnings Test For HCL Technologies: SEBI RA Rohit Mehta Watches Support At ₹1,600

HCL Tech is down 16% from its January highs and trades near a crucial support level. The analyst expects a potential rebound if results beat expectations.

HCL Technologies has entered a consolidation phase following a steep correction earlier this year. Investors will be watching for its first-quarter earnings on July 14, after TCS reported a weak performance on Thursday. 

At Friday’s close, HCL Tech shares were down 1.8% at ₹1,633, tracking the broader Nifty IT index’s 0.8% decline. 

The stock is currently hovering near a crucial support zone between ₹1,625 and ₹1,600, and a breakdown below this could push it toward the next major support at ₹1,206 - ₹1,178, while a bounce from this level could indicate a potential reversal, said SEBI-registered analyst Rohit Mehta.

Technically, the stock had formed a rounded bottom followed by a strong rally, but is now consolidating after a steep correction, the analyst said. Selling volumes have started to cool, hinting at a possible pause in the downtrend.

Promoter shareholding remained unchanged at 60.82% from December 2024 to March 2025. Foreign Institutional Investors (FIIs) slightly reduced their stake to 19.15% from 19.38% while domestic investors (DII) increased their stake to 15.44% from 15.21%.

The company’s key strengths include a debt-free balance sheet, an attractive 3.25% dividend yield, and improved debtor days; however, its modest 10.6% sales CAGR over the past five years continues to be a concern.

Peer Tata Consultancy Services (TCS) posted a 6% rise in Q1 net profit to ₹12,740 crore, with revenue increasing 1.3% year-on-year to ₹63,437 crore, though down 3.1% in constant currency terms.

Sentiment turned ‘bearish’ from ‘neutral’ a week ago.

The stock has shed over 14% year-to-date (YTD).

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