'In a sweet spot': CLSA upgrades this IT stock on hopes of strong growth versus peers

Shares of HCL Technologies Ltd. were trading nearly 3% higher on Wednesday, April 1, after a brokerage upgrade.

Brokerage firm CLSA upgraded HCLTech to ‘Outperform’ and set a price target of ₹1,524 per share.

The brokerage said recent concerns around AI disruption in IT services, along with uncertainty due to the Middle East conflict impacting discretionary spending, have placed HCLTech in a relatively favourable position.

On the AI front, CLSA said that HCLTech has been proactive, aligning its organisation to integrate AI across operations and building partnerships with key technology players, including OpenAI.

It believes the company is 6-9 months ahead of both Indian and global peers in this space.

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The brokerage added that amid ongoing geopolitical uncertainty, global IT spending could shift further towards cost optimisation rather than discretionary projects, which plays to HCLTech’s strengths among large-cap peers.

CLSA expects HCLTech to remain the fastest-growing large-cap IT services company globally for the fourth consecutive year in FY27, with organic constant currency growth of 4.8%.

Analyst sentiment on the stock remains mixed. Of the 47 analysts tracking HCLTech, 21 have a ‘Buy’ rating, 18 recommend ‘Hold’, while eight have a ‘Sell’ call.

Shares of HCLTech were trading at ₹1,367.4, up 1.92% on the day. Despite the recent uptick, the stock is down over 16% so far in 2026.