HCL Tech share price rises 3% on 5-year deal with MKS Instruments

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HCL Technologies shares rose 3 percent to hit an all-time high of Rs 1,315.1 in BSE after the company signed a five-year digital transformation contract with MKS Instruments Inc., a global provider of instruments, systems, subsystems and solutions for advanced manufacturing processes, to improve performance, productivity and time to market.

“HCL will drive the digital and cloud-ready transformation for MKS Instruments through AI / ML-led automation, enhanced user experience with end-to-end infrastructure services, digital workplace services and IT transformation. MKS Instruments employees in nearly 60 countries have the advantage of leveraging HCL’s vast network of global delivery centers and its wide range of technology solutions, including its state-of-the-art AI and automation frameworks and tools, “the company said.

The stock opened 0.92 percent higher at Rs 1,287.15 from its previous closing price of Rs 1,275.35. With a market cap of Rs 3.49,370.81 crore, the stocks trade higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Large-cap stock is up 36 percent since the beginning of this year and has returned 61 percent over the past 12 months.

“MKS Instruments is excited to partner with HCL to enhance the end-user experience by automating operations and migrating towards a hybrid cloud journey,” said Connie Flynn, chief information officer, MKS Instruments. “The presented solutions will support MFS in a time of increasing growth and digital acceleration.”

“We are excited to partner with MKS to provide a technology-centric approach to achieving its business goals and digital transformation roadmap,” said Ajay Bahl, executive vice president, HCL Technologies. “End users benefit from a seamless digital experience with access to smarter and better processes and systems.”

According to MarketsMojo, the company has strong long-term fundamental strength with an average return on equity (ROE) of 22.94% and low leverage (average) of -0.16. The technical trend improved from Mildly Bullish on July 14th, 2021 and has since generated a 30.25% return. The stock is technically bullish and several factors for the stock are bullish such as MACD, Bollinger Band, KST, DOW, and OBV. However, it found that valuation is currently expensive.

Recently, HCL Technologies (HCL) and Finastra, the largest pure software provider serving the entire financial services industry, expanded their partnership to drive digital transformation in South Korea and Taiwan.

As part of the engagement, HCL will leverage its next generation digital transformation and service capabilities to bring two of Finastra’s strategic products, Fusion Cash Management and Fusion Summit, to the region’s financial services ecosystem. Fusion Cash Management supports the digital corporate banking experience for financial institutions around the world, while Fusion Summit provides a feature-rich core trading solution for capital markets.

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