Motilal Oswal Institutional Equities expects the robust performance in HCL Technologies' Services business to continue. Sustainable demand momentum for Cloud and Digital Engineering benefits HCLT. Strong headcount additions and deal wins reflects the management's confidence on a sustainable growth momentum.

The broking firm continues to see potential in HCLT's Products and Platforms business. While, the recent departure of the head of Products has elevated concerns. However, we don't see a meaningful risk from this event. "Our sensitivity analysis suggests limited impact on EPS even in a bear case (4% decline in revenue for the Products and Platforms business in FY23E would lead to a 2.6% drag on our EPS estimate)."

"Recent revision in payout policy and higher payout reflects a strategic shift to focus on organic growth. We maintain our Buy rating," it added.

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