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Mint
3 days ago
- Business
- Mint
TCS vs HCL Tech vs Wipro: Which IT stock offers a better opportunity now?
After the announcement of the financial results for the April-June quarter of the fiscal year 2025-26 (Q1FY26), major Indian information technology (IT) firms have gained significant attention in the latest market sessions. As investors on D-Street weigh their options for buying, selling, or holding IT stocks at this moment, market analysts favour Tata Consultancy Services (TCS), followed by HCL Technologies Ltd (HCL Tech), with Wipro coming in third after their latest Q1FY26 earnings report. Wipro announced on Thursday, July 17, a 9.8% increase in its consolidated profit after tax, reaching ₹ 3,336.5 crore for the June quarter. This is an increase from a profit after tax of ₹ 3,036.6 crore reported in the same quarter last year, as stated in the company's regulatory filing. The consolidated revenue from operations for Wipro rose slightly to ₹ 22,134.6 crore during the April-June period, compared to ₹ 21,963.8 crore in the corresponding period of the previous year. HCL Technologies revealed on Monday, July 14, a 9.7% drop in its consolidated net profit for the June quarter, affected by rising expenses and the one-off impact of a client's insolvency. The company disclosed a net profit (attributable to the company's owners) of ₹ 4,257 crore during the same quarter last year, according to a regulatory announcement. In the reviewed quarter, revenue from operations grew by 8.1%, amounting to ₹ 30,349 crore, compared to ₹ 28,057 crore in Q1FY25. The firm reported an operating margin of 16.3%, which did not meet their expectations. While Q1 has generally been their weakest quarter, the lower-than-expected operating margin was mainly due to a decline in utilization resulting from delays in the ramp-up of a specific program. On Thursday, July 10, TCS reported a 6% growth in its net profit for the June quarter, totaling ₹ 12,760 crore. A year earlier, the Tata group company had posted a net profit of ₹ 12,040 crore. The firm's revenue increased by 1.3%, reaching ₹ 63,437 crore, compared to ₹ 62,613 crore for the same quarter last year, though it saw a 3% decline when assessed on a constant currency basis. A company statement noted that its operating profit margin rose by 0.30 percent sequentially, now at 24.5% for the April-June timeframe. According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, TCS, HCL Tech, and Wipro present distinct risk-reward profiles based on their Q1 FY26 performance and strategic posture. Srivastava believes TCS remains the most stable among the three, with strong operating (24.5%) and net margins (20.1%), and nearly perfect operating cash conversion (100.3%). Its robust Q1 TCV of $9.4 billion, focus on AI, and steady growth in BFSI and tech services indicate enduring client trust and adaptability. Despite muted YoY revenue growth (1.3%), TCS's margin resilience and high RoCE make it a safe, large-cap investment ideal for conservative investors seeking steady compounding and dividend payouts. Talking about HCL Tech said that while showing healthy revenue growth (8.2% YoY), saw a sharp EBIT margin contraction to 16.3% (from 19.4% in Q4 FY25), primarily due to wage hikes and AI investments. However, its free cash flow at 121% of net income and strong deal wins ($1.812B) suggest the margin dip may be transitory. HCL Tech also benefits from robust traction in telecom/media and Americas. Investors with a medium-risk appetite may find it appealing due to its strong fundamentals and growth initiatives in engineering/R&D and GenAI. Seema explained that Wipro, though improving in bookings ($2.666B, up 131% YoY), remains a laggard in revenue growth (0.8% YoY) and showed QoQ revenue/margin decline. Yet, its focus on GenAI and operational efficiency led to a 10% YoY profit growth. With a 15% net margin and strong cash flow (123% of net profit), Wipro might offer turnaround potential, suitable for value-oriented investors willing to bet on a cyclical upturn. Overall, TCS stands out for stability, HCL Tech for balanced growth, and Wipro for potential upside with higher risk. Anshul Jain, Head of Research at Lakshmishree Investment said that the Indian IT space is showing mixed signals, with large-cap names like TCS, HCL Tech, and Wipro trading at critical levels. Here's a breakdown of how each is positioned and which one presents the better opportunity right now. Jain explained that TCS share price is currently trading around its key support level of ₹ 3,177. The stock is showing signs of weakness, and a breach below this level could accelerate selling pressure, dragging it down toward ₹ 3,000. Until the support holds and there's clear evidence of buying, TCS remains vulnerable. HCL Tech shares has recently closed a price gap near ₹ 1,600. The next gap lies in the ₹ 1,526– ₹ 1,482 range — a zone where buyers could step in. If bullish price action develops around this area, it may offer a short-term bounce back to ₹ 1,650. Traders should watch closely for reversal signals before entering, according to Anshul Jain. Wipro, meanwhile, has been consolidating in a tight range between ₹ 275 and ₹ 235 for the last 78 days. This setup makes it the most straightforward trade among the three. A decisive breakout above ₹ 275 would signal fresh momentum and offer a clean buying opportunity, belives Jain. Wipro share price looks most promising on a breakout above ₹ 275. HCL Tech shares is worth watching for a bounce near its gap support. TCS share price remains weak and should be avoided unless ₹ 3,177 holds firmly. 'Short-term, Wipro offers the best potential, but only above the breakout level,' said Jain. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
4 days ago
- Business
- Mint
Jio Financial Services Q1 results 2025 out. Should you buy this Mukesh Ambani-owned stock?
Jio Financial Services Q1 results 2025 review: Mukesh Ambani-owned Jio Financial Services declared its Q1 results 2025 on Thursday after the market hours. So, Jio Financial shares are expected to remain in focus once the Indian stock market opens for trade on Friday. According to stock market experts, Jio Financial Services has delivered a firm Q1FY26 number and the stock is expected to come under the bulls' radar in the Opening Bell. They said that Jio Financial Services share price may touch ₹ 340 to ₹ 350, if bulls outperform bears in the upcoming session. Speaking on the Jio Financial Services Q1 results 2025, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, "Jio Financial Services Limited (JFSL) delivered a strong performance in Q1 FY26, with consolidated total income rising 48% YoY to ₹ 619 crore, driven by robust growth across its diversified business segments. Notably, Net Income from Business surged nearly 4x YoY to ₹ . 219 crore, contributing about 40% of total net income, reflecting improved core operating efficiency. The company's Profit After Tax stood at ₹ . 325 crore, growing 4% YoY, while Pre-Provisioning Operating Profit rose 8% YoY to ₹ . 366 crore, indicating disciplined cost management. The standout performer was Jio Credit Limited (JCL), whose AUM skyrocketed to ₹ . 11,665 crore from just ₹ . 217 crore a year ago, aided by a credit-conscious approach and successful market borrowings at competitive rates." "In asset management, JioBlackRock crossed ₹ . 17,800 crore in AUM within days of launch, placing it among India's top 15 fund houses by debt AUM. The Payments Bank subsidiary became wholly owned after acquiring SBI's stake, expanding its customer base to 2.58 million, and entering toll processing via NHAI empanelment. The JioFinance app recorded 8.1 million monthly active users, supported by a fast-growing network of over 50,000 business correspondents. The company also made strategic technological advances, deploying AI-driven customer insights and personalisation capabilities," said Seema Srivastava of SMC Global Securities. Seema Srivastava, a certified Chartered Accountant (CA), also said that JFSL demonstrated healthy growth, prudent risk management, and scalable digital-first operations, positioning itself as a rising force in India's financial services ecosystem. With strong capital backing and strategic expansion into asset management, lending, payments, and broking, JFSL is well placed for sustainable, multi-vertical growth. Expecting a strong opening for the Jio Financial Services shares, Sumeet Bagadia, Executive Director at Choice Broking, said, "Jio Financial Services shares are looking positive on the technical chart pattern. The Reliance Group stock trades in the ₹ 300 to ₹ 350 range. The scrip may become highly bullish once it breaks above ₹ 350 on a closing basis." On suggestion to investors regarding Jio Financial Services shares, Sumeet Bagadia said, 'Jio Financial Services shareholders are advised to hold the scrip for the short-term target of ₹ 340 to ₹ 350, maintaining stop loss at ₹ 300. Fresh investors may also initiate fresh buying for the short-term target of ₹ 340 to ₹ 350, maintaining stop loss at ₹ 300 apiece levels.' Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
15-07-2025
- Business
- Mint
HCL Tech share price dips after Q1 results 2025. More pain ahead?
HCL Technologies share price: After the announcement of HCL Technologies' Q1 results 2025 on Monday, the HCL Tech share price witnessed strong selling pressure during the Opening Bell on Tuesday. Today, the HCL Tech share price opened with a downside gap at ₹ 1,590 apiece on the NSE and touched an intraday low of ₹ 1,568.30 per share in the early morning deals, recording nearly 3 per cent dip against its previous day's close of ₹ 1,619.80 apiece on the NSE. According to stock market experts, HCL Technologies Q1 results 2025 is disappointing as the Indian IT giant reported a 10 per cent YoY decline in net profit, whereas its operating margins also got compressed. However, the company management has expressed sharp recovery in the July to September 2025 quarter. They said that HCL Tech shares have a strong base at ₹ 1,500, and the IT stock is facing resistance at ₹ 1,700. They advised investors to maintain a buy-on-dips strategy until the HCL Tech share price is above ₹ 1,500. Speaking on HCL Technologies results, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, 'HCL Tech's Q1 FY26 results reflect ongoing macroeconomic challenges and industry headwinds, with a 10% year-on-year decline in net profit to ₹ 3,843 crore, despite an 8.2% growth in revenue to ₹ 30,349 crore. The fall in profitability is largely attributed to lower utilisation rates and strategic investments in generative AI and go-to-market (GTM) initiatives. Operating margins compressed to 16.3%, down 160 bps sequentially, prompting the company to revise its FY26 margin guidance downward to 17–18% from 18–19% earlier. Revenue growth guidance was modestly raised to 3–5% in constant currency, reflecting cautious optimism amid a subdued demand environment. Additionally, net new deal wins dropped to $1.81 billion from $3 billion in the previous quarter due to procedural delays in large deal closures, although management expects a recovery in Q2.' 'Despite the near-term pressure on profitability and deal momentum, the company continues to emphasise long-term growth, especially in AI-driven services. CEO C Vijayakumar highlighted stable demand conditions and a healthy pipeline, with AI propositions gaining traction, aided by its OpenAI partnership. Strong cash flow metrics (OCF/NI at 129% and FCF/NI at 121%) and an improving return on invested capital (ROIC of 38.1%) underscore operational efficiency. The interim dividend of ₹ 12 per share reflects sustained shareholder commitment,' the SMC Global Securities expert added. Advising investors to buy in this dip, Sumeet Bagadia, Executive Director at Choice Broking, said, 'HCL Tech shares have strong support placed at ₹ 1,500, whereas it is facing a hurdle at ₹ 1,700. On the technical chart, the stock looms positive and one can initiate a buy-on-dips strategy and keep adding until the stock is above ₹ 1,500 for the short-term target of ₹ 1,700.' (This is a developing story. Please refresh for more updates) Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
News18
11-07-2025
- Business
- News18
TCS Shares In Focus After IT Major Posts 6% Rise In Net Profit; What Should Investors Do Now?
Last Updated: Shares of Tata Consultancy Services Ltd. (TCS), the IT services giant, will be in focus after reporting their first quarter earnings TCS Share Price Today: Shares of Tata Consultancy Services Ltd. (TCS), the IT services giant, will be in focus after reporting their first quarter earnings after market hours on Thursday, July 10. Experts believe that the shares of the largest IT company in India have a chance of hitting Rs 3,580 levels after a positive market reaction fueled by the Q1 results. TCS Q1 Results Highlights The IT major reported a 5.98 per cent rise year-on-year (YoY) in its net profit to Rs 12,760 crore for the first quarter ended June 30, 2025 (Q1 FY26). On a quarter-on-quarter (QoQ) basis, the net profit grew 4.38%. It had reported a net profit of Rs 12,040 crore a year ago and Rs 12,224 crore in the previous quarter. The Q1 FY26 earnings are better than expectations. A Bloomberg consensus poll of analysts had pegged TCS' Q1 FY26 net profit growth at a muted 1.9% to Rs 12,263 crore. In dollar terms, the company's net profit rose 3.5% YoY to $1.49 billion. The company's revenue from operations during April-June 2025 stood at Rs 63,437 crore, which is 1.13 per cent higher than the Rs 62,613 crore reported last year. On a sequential basis, the revenue fell 1.61%. It was also down by 3% on a constant currency basis. It also reported new deal signings of $9.4 billion during the quarter. The company declared an interim dividend of Rs 11 for the financial year 2025-26. It had declared a final dividend of Rs 30 for the previous year 2024-25. 'We would like to inform you that at the board meeting held today, the directors have declared an interim dividend of Rs 11 per Equity Share of Rs 1 each of the Company," TCS said in a regulatory filing on July 10, 2025. Tata Consultancy Services (TCS) has shown commendable resilience in the face of ongoing macroeconomic challenges, according to Seema Srivastava, Senior Research Analyst at SMC Global Securities. 'TCS delivered a steady performance in Q1 FY26, with revenue rising to Rs 63,437 crore—marking a 1.3% year-on-year (YoY) increase—despite a 3.1% decline in constant currency terms," she said. The IT major reported a 6% YoY growth in net income, reaching Rs 12,760 crore, with a net margin of 20.1% and improved operating margin of 24.5%. The company also announced a dividend of Rs 11 per share for the quarter. Srivastava added that a Total Contract Value (TCV) of $9.4 billion reflects strong client traction, especially in artificial intelligence, cloud, and cybersecurity. Key contributors to this growth included offerings like AI & Data (including WisdomNext™), TCS Interactive, and the Cyber Defence Suite. On a sectoral basis, Energy & Utilities grew 2.8%, and Technology Services rose 1.8%, while Life Sciences and the India market saw sharp declines of 9.6% and 21.7%, respectively. Regional growth was led by MEA, Asia Pacific, and Latin America. Should You Buy TCS Stock? Anshul Jain, Head of Research at Lakshmishree Investment, commented on TCS's technical setup. He noted that the stock has been trading within a narrow band of Rs 3,580 to Rs 3,360 for the past 11 weeks, establishing firm support and resistance levels. 'If TCS holds above the Rs 3,360 mark, a rebound toward the top of the range at Rs 3,580 is highly likely," said Jain. 'However, a decisive breakdown below Rs 3,360 would confirm a range breakdown and could drag the stock down to the Rs 3,250 level. Any negative reaction to the company's results could act as a catalyst for such a move." Nomura has maintained a neutral rating on TCS, citing limited growth visibility for FY26. The brokerage noted that while TCS management remains optimistic and believes FY26 will outperform FY25 across key markets, the outlook remains uncertain. However, Nomura added that significant margin expansion in FY26 appears unlikely. In light of this, the firm has revised its FY26–28 earnings per share (EPS) estimates downward by 1–2 percent to reflect anticipated changes in revenue and margins. Consequently, it has lowered the target price for TCS shares to Rs 3,780 from its previous estimate of Rs 3,820. HSBC has also retained a hold rating on TCS, keeping its target price unchanged at Rs 3,665. The brokerage highlighted that the company's Q1 performance missed expectations, primarily due to weaker-than-expected revenues from the BSNL contract as well as softness in international business. What raised more concern, according to HSBC, was the unexpected pressure on profitability—an area where TCS usually maintains strength. Additionally, the firm observed that the overall demand commentary from management was slightly weaker than anticipated. view comments Location : New Delhi, India, India First Published: July 11, 2025, 07:42 IST News business » markets TCS Shares In Focus After IT Major Posts 6% Rise In Net Profit; What Should Investors Do Now? Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
10-07-2025
- Business
- Mint
TCS share price: Is this a stock to buy after Q1 results 2025?
TCS Q1 Results: Tata Consultancy Services (TCS) on Thursday, 10 July 2025, announced its first quarter results for the financial year 2025-26. Experts believe that the shares of the largest IT company in India have a chance of hitting ₹ 3,580 levels after a positive market reaction fueled by the Q1 results. According to the exchange filings, the company's net profits rose 6% to ₹ 12,760 crore for the April to June quarter of the financial year 2025-26, compared year-on-year (YoY) with ₹ 12,040 crore in the same quarter a year ago. TCS's consolidated revenue from operations also rose 1.3% to ₹ 63,437 crore in the first quarter, compared to ₹ 62,613 crore in the same quarter of the previous financial year. The IT major also announced an interim dividend issue of ₹ 11 per share with a face value of Re 1 apiece to investors along with its quarterly results for the April-June quarter. However, on the salary hike front, the company did not announce any plans to increase employee wages. Seema Srivastava, Senior Research Analyst at SMC Global Securities, highlighted how TCS is showing resilience amid macroeconomic headwinds, with the net profits rising for the quarter. 'Tata Consultancy Services (TCS) share price delivered a steady performance in Q1 FY26, showcasing resilience amid macroeconomic headwinds. Revenue rose to ₹ 63,437 crore, a 1.3% YoY increase, though it declined 3.1% in constant currency. Net income climbed 6% YoY to ₹ 12,760 crore, with a net margin of 20.1% and an improved operating margin of 24.5%. It declared a dividend of ₹ 11 per share,' said Srivastava. 'The Total Contract Value (TCV) of $9.4 billion indicates healthy client traction in AI, cloud, and cybersecurity. Growth was led by AI & Data (including WisdomNext™), TCS Interactive, and Cyber Defence Suite. Sector-wise, Energy & Utilities (+2.8%) and Technology Services (+1.8%) showed resilience, while Life Sciences (-9.6%) and India (-21.7%) saw significant declines. MEA, Asia Pacific, and Latin America posted healthy growth,' highlighted the stock market expert. 'On the talent and operations front, TCS added 6,071 employees YoY, bringing its total headcount to 613,069. Learning and development remained a priority, with associates logging 15 million learning hours and over 114,000 gaining advanced AI skills. Attrition dropped to 13.8%, indicating rising workforce stability. TCS strengthened its global client base through strategic partnerships with IBM (quantum computing), ICICI Securities, Virgin Atlantic, Kingfisher Plc, and Jazeera Airways. It also launched new offerings such as DigiBOLT™, SovereignSecure™ Cloud, and expanded its AI ecosystem. With 8,987 patent applications and numerous global recognitions, TCS reinforced its position as a tech innovation leader focused on sustainable, future-ready growth,' said Seema Srivastava. Anshul Jain, the Head of Research at Lakshmishree Investment, said that the shares of TCS have been trading at a 'tight' range of ₹ 3,580 to ₹ 3,360 and are expected to bounce towards the top of the range at ₹ 3,580 if they hold above the ₹ 3,360 mark. 'For the past 11 weeks, the TCS share price has been trading in a tight range of ₹ 3,580 to ₹ 3,360, with clear support and resistance levels shaping the structure. A decisive breakdown below ₹ 3,360 will confirm a range breakdown, potentially dragging the stock lower to test the ₹ 3,250 zone. An adverse reaction to its results could act as the catalyst for such a move. Conversely, if TCS shares hold above ₹ 3,360, a bounce back towards the top range at ₹ 3,580 remains highly likely,' said Jain. Tata Consultancy Services (TCS) shares closed 0.06% lower at ₹ 3,382.30 after Thursday's stock market session, compared to ₹ 3,384.35 at the previous market close. The company announced its results after market hours on 10 July 2025. TCS shares have given stock market investors more than 52% returns in the last five years. However, the stock has lost 13.15% in the last one-year period. On a year-to-date (YTD) basis, the stock is down 17.45% in 2025 and is trading 0.13% lower in the last three stock market sessions. The shares of the IT major hit their 52-week high level at ₹ 4,585.90 on 2 September 2025, while the 52-week low level was at ₹ 3,060.25 on 7 April 2025, according to the BSE data. The company's market capitalisation was at over ₹ 12.2 lakh crore as of the stock market close on 10 July 2025. Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
