HCL info systems, a Delhi based computer system, telecommunication and diversified activities company, has shown more fall than the Sensex for the past year. Such fall was seen to be more than 50% while the BSE showed an aggregate fall of only 20% in the past year. Such immense fall has been primarily because of the dismal financial performance and that has aggravated in the past 2 quarters.
It is however expected that the stock will take recourse and shall perform well now that it has successfully bagged new product launch through the distribution channel of Nokia. Such increased mobility of products shall definitely improve the company’s growth and performance.The telecom & office automation services account for almost 70% of the company’s revenue while the rest of the revenue is taken care of by the computer systems activities.
The company had seen a steep slump in net sales to the extent of 5% in y-o-y comparison in June 2011. The net profit has declined by 30%. This has contributed by more than 13% fall in telecom distribution. The system integration business is what ahs been showing a dull performance.
‘Bell the Bull says’ The new deal with Nokia will definitely lead to growth in the systems integration business. Such renewed deal till 2014 will make the company engaged with the launch of the dual SIM phones by Nokia. Despite this, the uncertain global economic condition and prevailing weakness in the European nations unfailingly raises concerns over the improvement in stock price performance.