HCL Tech shares fall after Kotak downgrades stock to ‘reduce’

As HCL Technologies’ stock surged by 22 percent over the past three months, Kotak Institutional Equities downgraded the IT company from an ‘add’ to a ‘reduce’ rating.

HCL Tech’s share price has increased by 5 percent in the last month, 22 percent over three months, and 35 percent in the past year. The company is now trading at a 9 percent and 4 percent discount to TCS and Infosys, respectively—considerably narrower than its five-year historical average. The stock is currently valued at 26 times its estimated FY2026 earnings, reflecting full valuations.