Q4 results impact: HCL Tech, AU SFB shares gain 6% each; Havells, M&M Finance drop up to 3%; target prices

Shares of HCL Technologies Ltd and AU Small Finance Bank Ltd (AU SFB) climbed 6 per cent each, while those of Havells India Ltd and M&M Financial Services Ltd fell up to 3 per cent following their March quarter earnings.

HCL Tech demonstrated resilient performance across its services (up 0.7 per cent quarter-on-quarter in constant currency) and software businesses (up 4.9 per cent year-on-year in constant currency) amidst a global environment characterised by increasing uncertainty and reduced discretionary spending, said HDFC Institutional Equities. The brokerage noted that AU SFB’s earnings were a marginal beat, with healthy growth on both sides of the balance sheet and stronger traction in other income, offset by accelerated provisions on unsecured NPAs.

Shares of HCL Tech rose 6.43 per cent to Rs 1,575, while AU SFB advanced 6.04 per cent to Rs 650.85.

M&M Financial Services’ operating performance remained subdued, with Q4FY25 earnings significantly below estimates. HDFC Institutional Equities added that the performance across segments was mixed for Havells India.

Havells India saw its shares fall 3.14 per cent to Rs 1,612.50. Mahindra & Mahindra Financial Services declined 2.04 per cent to Rs 271.50.

Nirmal Bang said HCL Tech reported a strong total contract value (TCV) in an otherwise muted quarter. Net-new bookings stood strong at $3 billion—above the guided range of $2–2.5 billion—and included one mega ER&D deal win. The brokerage suggested a target price of Rs 1,748 for the stock.

Havells’ topline and Ebitda margin came in line with Nirmal Bang’s estimates. The broking firm maintained a ‘Buy’ rating on the stock, with a target of Rs 1,930. M&M Financial’s Q4 disbursement growth was soft (up 2 per cent year-on-year), but AUM growth remained strong at 17 per cent year-on-year, reaching Rs 1,19,670 crore, Nirmal Bang noted, while suggesting a target of Rs 283.

AU SFB outperformed the industry in terms of business growth, Nirmal Bang said, while suggesting a target price of Rs 745 on the stock.

According to Nuvama Institutional Equities, AU Small Finance Bank’s Q4 results missed expectations on credit costs, and the bank's net interest margin (NIM) was also soft. It said Mahindra & Mahindra Financial Services missed on net interest income (NII) due to weak disbursal growth and elevated credit costs. Havells India posted a strong beat on all counts in Q4FY25, while HCL Technologies’ March quarter results were largely in line with Street expectations, the brokerage noted in its review.

Nuvama suggested target prices of Rs 530 for AU SFB, Rs 280 for M&M Financial, Rs 1,890 for Havells India, and Rs 1,700 for HCL Tech.