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HCL Technologies

NSEI:HCLTECH
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HCLTECH
NSEI
₹1,495B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

HCL Technologies Limited offers software, information technology (IT) infrastructure, and business process outsourcing services worldwide. The last earnings update was 85 days ago. More info.


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HCLTECH Share Price and Events
7 Day Returns
2.9%
NSEI:HCLTECH
1%
IN IT
-1.9%
IN Market
1 Year Returns
6.6%
NSEI:HCLTECH
21.2%
IN IT
-2.8%
IN Market
HCLTECH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HCL Technologies (HCLTECH) 2.9% 11.9% 20.3% 6.6% 36% 62.4%
IN IT 1% 5.3% 10.3% 21.2% 47.8% 82%
IN Market -1.9% 1.2% 5.1% -2.8% 38.3% 71%
1 Year Return vs Industry and Market
  • HCLTECH underperformed the IT industry which returned 21.2% over the past year.
  • HCLTECH outperformed the Market in India which returned -2.8% over the past year.
Price Volatility
HCLTECH
Industry
5yr Volatility vs Market

Value

 Is HCL Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HCL Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HCL Technologies.

NSEI:HCLTECH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 31 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.6%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:HCLTECH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 35%) (2.72%))
1.05
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.05 * 8.6%)
16.58%

Discounted Cash Flow Calculation for NSEI:HCLTECH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HCL Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:HCLTECH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 16.58%)
2019 995.25 Analyst x12 853.69
2020 1,361.09 Analyst x19 1,001.45
2021 1,556.92 Analyst x17 982.61
2022 1,738.56 Est @ 11.67% 941.18
2023 1,919.92 Est @ 10.43% 891.54
2024 2,103.60 Est @ 9.57% 837.90
2025 2,292.12 Est @ 8.96% 783.13
2026 2,487.83 Est @ 8.54% 729.11
2027 2,692.87 Est @ 8.24% 676.95
2028 2,909.23 Est @ 8.03% 627.32
Present value of next 10 years cash flows $8,324.88
NSEI:HCLTECH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,909.23 × (1 + 7.55%) ÷ (16.58% – 7.55%)
$34,644.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $34,644.91 ÷ (1 + 16.58%)10
$7,470.54
NSEI:HCLTECH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,324.88 + $7,470.54
$15,795.41
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $15,795.41 / 1,356.28
$11.65
NSEI:HCLTECH Discount to Share Price
Calculation Result
Exchange Rate USD/INR
(Reporting currency to currency of NSEI:HCLTECH)
69.835
Value per Share
(INR)
= Value per Share in USD x Exchange Rate (USD/INR)
= $11.65 x 69.835
₹813.31
Value per share (INR) From above. ₹813.31
Current discount Discount to share price of ₹1,138.95
= -1 x (₹1,138.95 - ₹813.31) / ₹813.31
-40%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HCL Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HCL Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HCL Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:HCLTECH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.03
NSEI:HCLTECH Share Price ** NSEI (2019-04-24) in INR ₹1138.95
NSEI:HCLTECH Share Price converted to USD reporting currency Exchange rate (INR/ USD) 0.014 $16.31
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 15.67x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HCL Technologies.

NSEI:HCLTECH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:HCLTECH Share Price ÷ EPS (both in USD)

= 16.31 ÷ 1.03

15.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCL Technologies is overvalued based on earnings compared to the IN IT industry average.
  • HCL Technologies is good value based on earnings compared to the India market.
Price based on expected Growth
Does HCL Technologies's expected growth come at a high price?
Raw Data
NSEI:HCLTECH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts
9%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.31x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:HCLTECH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.89x ÷ 9%

1.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCL Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HCL Technologies's assets?
Raw Data
NSEI:HCLTECH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $4.17
NSEI:HCLTECH Share Price * NSEI (2019-04-24) in INR ₹1138.95
NSEI:HCLTECH Share Price converted to USD reporting currency Exchange rate (INR/ USD) 0.014 $16.31
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:HCLTECH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:HCLTECH Share Price ÷ Book Value per Share (both in USD)

= 16.31 ÷ 4.17

3.91x

* Primary Listing of HCL Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCL Technologies is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess HCL Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. HCL Technologies has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HCL Technologies expected to perform in the next 1 to 3 years based on estimates from 31 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HCL Technologies expected to grow at an attractive rate?
  • HCL Technologies's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • HCL Technologies's earnings growth is positive but not above the India market average.
  • HCL Technologies's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:HCLTECH Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:HCLTECH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts 9%
NSEI:HCLTECH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts 11%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:HCLTECH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:HCLTECH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 10,767 2,006 1,739 28
2020-03-31 9,818 1,813 1,589 31
2019-03-31 8,701 1,532 1,458 32
NSEI:HCLTECH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 8,393 1,354 1,420
2018-09-30 8,179 1,314 1,397
2018-06-30 8,008 1,301 1,379
2018-03-31 7,838 1,345 1,360
2017-12-31 7,617 1,218 1,366
2017-09-30 7,374 1,275 1,332
2017-06-30 7,169 1,352 1,294
2017-03-31 6,975 1,408 1,262
2016-12-31 6,746 1,355 1,198
2016-09-30 6,566 1,222 1,182
2016-06-30 6,389 1,095 1,145
2016-03-31 6,235 1,083 1,118

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HCL Technologies's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
  • HCL Technologies's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:HCLTECH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below

All data from HCL Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:HCLTECH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 1.26 1.43 1.12 27.00
2020-03-31 1.16 1.30 1.08 31.00
2019-03-31 1.06 1.10 1.03 31.00
NSEI:HCLTECH Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.03
2018-09-30 1.00
2018-06-30 0.99
2018-03-31 0.97
2017-12-31 0.97
2017-09-30 0.94
2017-06-30 0.91
2017-03-31 0.89
2016-12-31 0.85
2016-09-30 0.84
2016-06-30 0.81
2016-03-31 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HCL Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess HCL Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HCL Technologies has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HCL Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HCL Technologies's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HCL Technologies's year on year earnings growth rate has been positive over the past 5 years.
  • HCL Technologies's 1-year earnings growth is less than its 5-year average (4% vs 7.4%)
  • HCL Technologies's earnings growth has not exceeded the IN IT industry average in the past year (4% vs 24.5%).
Earnings and Revenue History
HCL Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HCL Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:HCLTECH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 8,392.61 1,420.46 992.05
2018-09-30 8,178.67 1,396.78 947.15
2018-06-30 8,008.04 1,379.32 923.53
2018-03-31 7,837.69 1,360.25 913.50
2017-12-31 7,616.55 1,366.13 882.34
2017-09-30 7,374.34 1,331.84 863.41
2017-06-30 7,168.74 1,293.88 838.50
2017-03-31 6,975.20 1,262.43 824.64
2016-12-31 6,745.62 1,197.65 812.63
2016-09-30 6,566.42 1,182.43 813.45
2016-06-30 6,388.54 1,144.89 803.98
2016-03-31 6,235.40 1,118.31 795.55
2015-12-31 6,138.69 1,103.49 783.67
2015-09-30 6,063.32 1,120.20 758.60
2015-06-30 5,952.30 1,163.69 733.09
2015-03-31 5,822.00 1,190.00 702.00
2014-12-31 5,692.41 1,184.36 678.20
2014-09-30 5,522.96 1,118.48 663.55
2014-06-30 5,359.75 1,036.92 657.13
2014-03-31 5,180.45 943.25 656.16
2013-12-31 5,009.98 867.93 656.52
2013-09-30 4,842.97 800.06 648.80
2013-06-30 4,686.45 732.46 636.63
2013-03-31 4,512.06 659.00 454.00
2012-12-31 4,260.58 578.41 422.96
2012-09-30 4,174.57 522.39 414.93
2012-06-30 4,151.53 481.39 599.52

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HCL Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • HCL Technologies used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • HCL Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HCL Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HCL Technologies has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HCL Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HCL Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HCL Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HCL Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HCL Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HCL Technologies Company Filings, last reported 3 months ago.

NSEI:HCLTECH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,720.42 581.67 918.50
2018-09-30 5,774.56 452.75 850.70
2018-06-30 5,677.85 83.23 936.14
2018-03-31 5,647.75 85.46 988.23
2017-12-31 5,437.79 92.23 842.96
2017-09-30 5,056.00 119.54 1,118.71
2017-06-30 5,374.92 96.56 1,431.08
2017-03-31 5,162.44 89.58 1,581.38
2016-12-31 4,559.82 98.55 1,676.15
2016-09-30 4,494.43 100.17 1,628.26
2016-06-30 4,302.74 130.15 1,589.34
2016-03-31 4,229.17 164.56 1,503.45
2015-12-31 4,085.24 44.74 1,482.83
2015-09-30 3,916.96 59.12 1,569.90
2015-06-30 3,888.88 101.77 1,671.26
2015-03-31 3,736.42 99.87 1,395.27
2014-12-31 3,568.20 99.09 1,509.64
2014-09-30 3,405.84 147.34 1,439.70
2014-06-30 3,336.58 169.15 1,576.52
2014-03-31 3,058.59 197.04 1,264.44
2013-12-31 2,741.08 168.22 1,029.53
2013-09-30 2,538.09 179.44 835.72
2013-06-30 2,406.99 175.87 715.69
2013-03-31 2,424.39 258.29 681.09
2012-12-31 2,250.59 290.79 585.93
2012-09-30 2,218.03 310.63 484.64
2012-06-30 1,768.80 392.89 448.34
  • HCL Technologies's level of debt (10.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (6.1% vs 10.2% today).
  • Debt is well covered by operating cash flow (232.8%, greater than 20% of total debt).
  • HCL Technologies earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess HCL Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HCL Technologies has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is HCL Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.66%
Current annual income from HCL Technologies dividends. Estimated to be 2.73% next year.
If you bought ₹2,000 of HCL Technologies shares you are expected to receive ₹13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HCL Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
  • HCL Technologies's dividend is below the markets top 25% of dividend payers in India (1.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:HCLTECH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:HCLTECH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 0.47 25.00
2020-03-31 0.43 27.00
2019-03-31 0.21 30.00
NSEI:HCLTECH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-23 0.108 0.789
2018-05-02 0.108 0.820
2018-01-19 0.119 0.823
2017-07-27 0.122 0.910
2017-01-24 0.352 2.833
2016-10-21 0.348 2.982
2016-08-03 0.357 3.009
2016-04-28 0.353 3.244
2016-01-19 0.233 1.921
2015-10-19 0.207 1.640
2015-08-03 0.195 1.414
2015-04-21 0.171 1.176
2015-01-30 0.143 0.918
2014-07-31 0.078 0.623
2013-11-28 0.095 0.869
2013-07-31 0.087 1.156
2012-10-17 0.066 1.128
2012-07-25 0.142 2.872
2012-04-18 0.070 1.636
2012-01-17 0.077 1.692
2011-10-18 0.075 1.954
2011-10-07 0.081 1.913
2011-07-27 0.081 1.957
2011-04-20 0.088 1.595
2011-01-19 0.087 1.688
2010-10-22 0.065 1.396
2010-10-20 0.045 0.947
2010-07-29 0.043 0.967
2009-08-31 0.071 1.992
2009-08-25 0.071 2.280

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of HCL Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess HCL Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HCL Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HCL Technologies has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of HCL Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vijay, CVK VijayaKumar
COMPENSATION $0
TENURE AS CEO 2.5 years
CEO Bio

Mr. C. VijayaKumar, also known as Vijay, has been the Chief Executive Officer and President at HCL Technologies Ltd. since October 20, 2016 and served as its Chief Operating Officer from July 2016 to October 20, 2016. Mr. VijayaKumar served as President of Infrastructure Services at HCL Technologies Ltd. until August 2, 2016. Mr. VijayaKumar served as Head of Delivery - Infrastructure Management Services at HCL Technologies Ltd. since March 2015. Mr. VijayaKumar served as a Corporate Vice President of Global Infrastructure Delivery Services at HCL Technologies Ltd. Mr. VijayaKumar was responsible for business planning, service delivery, transition, transformation and ongoing governance. He heads worldwide delivery and operations for the Infrastructure Services Division of HCL Technologies (HCLT). Under his leadership, the Global Infrastructure Service Delivery organization has consistently achieved best in class Customer Experience Scores, been applauded in numerous industry reports and won many awards from Fortune/Global 500 customers. He joined HCL as part of the start-up team at Comnet as a Senior Engineer almost two decades back and swiftly rose up the ranks on the dint of his diligence and many path-breaking ideas that has helped the rapid growth of HCL's Infrastructure Services business. His first project at HCL was the setting up of the world’s first floorless stock exchange network in 1994, which created a new paradigm for digital stock trading. In the past, he has also had a successful stint in Sales as a Regional Sales Head in the Indian market and led the delivery organization for North America. He has attended the Executive Management program at XLRI, Jamshedpur and the Personal Leadership program from the Franklin Covey Leadership Institute. Mr. VijayaKumar holds a Bachelors of Engineering (Electrical & Electronics Engineering) degree from P.S.G. College of Technology in Tamil Nadu, India.

CEO Compensation
  • Insufficient data for Vijay, CVK to compare compensation growth.
  • Vijay, CVK's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the HCL Technologies management team in years:

1.3
Average Tenure
53
Average Age
  • The average tenure for the HCL Technologies management team is less than 2 years, this suggests a new team.
Management Team

Shiv Nadar

TITLE
Founder
COMPENSATION
$16M
AGE
73

Vijay, CVK VijayaKumar

TITLE
President & CEO
TENURE
2.5 yrs

Prateek Aggarwal

TITLE
Chief Financial Officer
AGE
51
TENURE
0.5 yrs

Manish Anand

TITLE
Senior VP
COMPENSATION
$7M
AGE
50

V. Apparao

TITLE
Chief Human Resources Officer
AGE
56
TENURE
1.3 yrs

Goutam Rungta

TITLE
Executive Vice President
AGE
45

Amit Roy

TITLE
Executive Vice President of Taxation
AGE
59

Rangarajan Vijayaradhavan

TITLE
Executive Vice President
AGE
53

Varanasi Guru Venkata Sharma

TITLE
Senior Vice President
AGE
54

Subramanian Gopalkrishnan

TITLE
Executive Vice President
AGE
51
Board of Directors Tenure

Average tenure and age of the HCL Technologies board of directors in years:

3.5
Average Tenure
60.5
Average Age
  • The tenure for the HCL Technologies board of directors is about average.
Board of Directors

Shiv Nadar

TITLE
Founder
COMPENSATION
$16M
AGE
73

Roshni Malhotra

TITLE
Vice Chairperson
COMPENSATION
$8M
AGE
36
TENURE
0.5 yrs

Ramanathan Srinivasan

TITLE
Non-Executive & Independent Director
COMPENSATION
$11M
AGE
72
TENURE
8 yrs

Subramanian Madhavan

TITLE
Non-Executive & Independent Director
COMPENSATION
$8M
AGE
62
TENURE
6.3 yrs

Robin Abrams

TITLE
Non-Executive & Independent Director
COMPENSATION
$12M
AGE
67
TENURE
19.6 yrs

Sosale Sastry

TITLE
Non-Executive & Independent Director
COMPENSATION
$9M
AGE
57
TENURE
6.8 yrs

Nishi Vasudeva

TITLE
Non-Executive & Independent Director
COMPENSATION
$6M
AGE
62
TENURE
2.7 yrs

Deepak Kapoor

TITLE
Non-Executive & Independent Director
COMPENSATION
$4M
AGE
59
TENURE
1.8 yrs

Thomas Sieber

TITLE
Non-Executive & Independent Director
COMPENSATION
$8M
AGE
56
TENURE
3.5 yrs

James Adamczyk

TITLE
Non-Executive & Independent Director
AGE
59
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by HCL Technologies insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
25. Mar 19 Buy C. VijayaKumar Individual 20. Mar 19 22. Mar 19 41,030 ₹1,046.51 ₹42,938,254
25. Mar 19 Sell Vijay Guntur Individual 22. Feb 19 20. Mar 19 -1,300 ₹1,037.25 ₹-1,347,491
18. Feb 19 Buy Vijay Guntur Individual 06. Feb 19 07. Feb 19 1,000 ₹1,062.50 ₹1,062,500
12. Nov 18 Buy Vama Sundari Investments (Delhi) Private Limited Company 07. Nov 18 07. Nov 18 11,000 ₹1,033.97 ₹11,373,628
06. Nov 18 Buy Vama Sundari Investments (Delhi) Private Limited Company 02. Nov 18 02. Nov 18 570,000 ₹1,006.51 ₹573,710,036
01. Nov 18 Buy Vama Sundari Investments (Delhi) Private Limited Company 30. Oct 18 30. Oct 18 545,000 ₹1,007.81 ₹549,258,838
24. Sep 18 Sell Vijay Guntur Individual 18. Sep 18 24. Sep 18 -1,500 ₹1,095.00 ₹-1,640,150
14. Sep 18 Sell Gade Rao Individual 04. Sep 18 06. Sep 18 -15,000 ₹1,078.42 ₹-16,176,299
10. Sep 18 Sell Amit Roy Individual 24. Aug 18 06. Sep 18 -950 ₹1,054.33 ₹-1,001,618
30. Aug 18 Sell Vijay Guntur Individual 27. Aug 18 27. Aug 18 -500 ₹1,040.00 ₹-520,000
24. Aug 18 Sell Amit Roy Individual 01. Aug 18 23. Aug 18 -960 ₹1,410.50 ₹-1,354,084
21. Aug 18 Sell Anil Chanana Individual 14. Aug 18 21. Aug 18 -63,730 ₹1,008.27 ₹-63,904,127
17. Aug 18 Sell Vijay Guntur Individual 14. Aug 18 14. Aug 18 -500 ₹1,000.00 ₹-500,000
03. Aug 18 Sell Vijay Guntur Individual 01. Aug 18 01. Aug 18 -1,500 ₹976.00 ₹-1,464,000
19. Jun 18 Buy Dalip Sachdeva Individual 03. May 18 15. Jun 18 2,000 ₹909.61 ₹1,819,215
X
Management checks
We assess HCL Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HCL Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does HCL Technologies Limited's (NSE:HCLTECH) Past Performance Indicate A Stronger Future?

Did HCLTECH's recent earnings growth beat the long-term trend and the industry. … HCLTECH's trailing twelve-month earnings (from 30 September 2018) of US$1.4b has … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.3%, indicating the rate at which HCLTECH is growing has slowed down.

Simply Wall St -

Is HCL Technologies Limited (NSE:HCLTECH) A High Quality Stock To Own?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.24. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

HCL Technologies Limited (NSE:HCLTECH): Has Recent Earnings Growth Beaten Long-Term Trend?

Today I will run you through a basic sense check to gain perspective on how HCL Technologies is doing by comparing its latest earnings with its long-term trend as well as the performance of its it industry peers. … Did HCLTECH beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 9.3%, indicating the rate at which HCLTECH is growing has slowed down

Simply Wall St -

HCL Technologies Limited (NSE:HCLTECH): Why Return On Capital Employed Is Important

As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand HCL Technologies’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Top Bear Market Investment: HCL Technologies Limited (NSE:HCLTECH)

High quality stocks such as HCL Technologies Limited has fared well over time in a fickle stock market, which is why I want to bring it into light amongst all the chaos. … Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … HCL Technologies Limited provides software, business process outsourcing, and information technology (IT) infrastructure services worldwide

Simply Wall St -

Should You Be Concerned About HCL Technologies Limited's (NSE:HCLTECH) Investors?

I am going to take a deep dive into HCL Technologies Limited’s (NSE:HCLTECH) most recent ownership structure, not a frequent subject of discussion among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

HCL Technologies Limited (NSE:HCLTECH): Exploring Free Cash Flows

Two important questions to ask before you buy HCL Technologies Limited (NSE:HCLTECH) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of HCL Technologies’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash HCL Technologies has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations

Simply Wall St -

What Do Analysts Think About HCL Technologies Limited's (NSE:HCLTECH) Future?

In March 2018, HCL Technologies Limited (NSE:HCLTECH) released its earnings update. … the higher past 5-year average growth rate of 16.29% … Presently, with latest-twelve-month earnings at US$1.36b, we should see this growing to US$1.39b by 2019.

Simply Wall St -

Reasons Why I Like HCL Technologies Limited (NSE:HCLTECH)

HCL Technologies Limited (NSE:HCLTECH) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of HCLTECH, it.

Simply Wall St -

Calculating The Intrinsic Value Of HCL Technologies Limited (NSE:HCLTECH)

I am going to run you through how I calculated the intrinsic value of HCL Technologies Limited (NSE:HCLTECH). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

HCL Technologies Limited offers software, information technology (IT) infrastructure, and business process outsourcing services worldwide. It provides application development and maintenance services; SAP landscape transformation, system conversion, and implementation services; Microsoft customer relationship management, cloud, analytics, infrastructure, and workplace innovation services; Oracle business consulting, implementation, upgrade, managed, and migration services; and business assurance and testing services, as well as autonomics and orchestration services, products, and platforms. The company also offers data center, workplace, network, mainframe, and service integration and management services. In addition, it provides embedded, software, digital, mechanical, and system and hardware engineering services, as well as product lifecycle management, product testing, and VLSI design services. Further, the company offers business supply chain management, finance and accounting, digital and content, and automation services. It serves financial services, consumer services, life science and healthcare, manufacturing, and public services industries. HCL Technologies Limited has a strategic alliance with Pivotal Software, Inc. to generate cloud-native applications for Pivotal cloud Foundry, a cloud-native application platform; and collaboration with IBM in designing hybrid cloud of organizations. HCL Technologies Limited was founded in 1976 and is headquartered in Noida, India.

Details
Name: HCL Technologies Limited
HCLTECH
Exchange: NSEI
Founded: 1976
₹1,494,619,312,536
1,356,278,868
Website: http://www.hcltech.com
Address: HCL Technologies Limited
Plot No. 3A,
Technology Hub,
Noida,
Uttar Pradesh, 201304,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI HCLTECH Equity Shares National Stock Exchange of India IN INR 11. Jan 2000
BSE 532281 Equity Shares Mumbai Stock Exchange IN INR 11. Jan 2000
Number of employees
Current staff
Staff numbers
0
HCL Technologies employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 12:47
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/01/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.