| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
HCLTECH Stock Overview
HCL Technologies Limited offers software development, business process outsourcing, and infrastructure management services worldwide.
HCL Technologies Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | ₹1,337.20 |
| 52 Week High | ₹1,377.75 |
| 52 Week Low | ₹891.00 |
| Beta | 0 |
| 1 Month Change | 14.15% |
| 3 Month Change | 9.48% |
| 1 Year Change | 35.10% |
| 3 Year Change | 176.77% |
| 5 Year Change | 218.86% |
| Change since IPO | 1,276.38% |
Recent News & Updates
There Are Reasons To Feel Uneasy About HCL Technologies' (NSE:HCLTECH) Returns On Capital
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...
Here's Why I Think HCL Technologies (NSE:HCLTECH) Might Deserve Your Attention Today
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Is HCL Technologies (NSE:HCLTECH) A Risky Investment?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Shareholder Returns
| HCLTECH | IN IT | IN Market | |
|---|---|---|---|
| 7D | 3.6% | 1.7% | 2.2% |
| 1Y | 35.1% | 39.3% | 36.2% |
Return vs Industry: HCLTECH underperformed the Indian IT industry which returned 39.3% over the past year.
Return vs Market: HCLTECH underperformed the Indian Market which returned 36.2% over the past year.
Price Volatility
| HCLTECH volatility | |
|---|---|
| HCLTECH Average Weekly Movement | 3.4% |
| IT Industry Average Movement | 8.0% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in IN Market | 9.8% |
| 10% least volatile stocks in IN Market | 4.1% |
Stable Share Price: HCLTECH is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: HCLTECH's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1976 | 168,977 | Vijay, CVK VijayaKumar | https://www.hcltech.com |
HCL Technologies Limited offers software development, business process outsourcing, and infrastructure management services worldwide. It operates through three segments: IT and Business Services; Engineering and R&D Services; and Products & Platforms. The IT and Business Services segment provides IT and business services, such as application, infrastructure, and digital process operations; digital transformation services for digital and analytics; IoTWoRKs; and cloud native and cybersecurity solutions.
HCL Technologies Fundamentals Summary
| HCLTECH fundamental statistics | |
|---|---|
| Market Cap | US$48.87b |
| Earnings (TTM) | US$1.75b |
| Revenue (TTM) | US$10.82b |
28.0x
P/E Ratio4.5x
P/S RatioIs HCLTECH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HCLTECH income statement (TTM) | |
|---|---|
| Revenue | US$10.82b |
| Cost of Revenue | US$6.58b |
| Gross Profit | US$4.24b |
| Expenses | US$2.49b |
| Earnings | US$1.75b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.64 |
| Gross Margin | 39.19% |
| Net Profit Margin | 16.14% |
| Debt/Equity Ratio | 6.2% |
How did HCLTECH perform over the long term?
See historical performance and comparisonDividends
1.6%
Current Dividend Yield34%
Payout RatioValuation
Is HCL Technologies undervalued compared to its fair value and its price relative to the market?
28.03x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HCLTECH (₹1337.2) is trading above our estimate of fair value (₹760.8)
Significantly Below Fair Value: HCLTECH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HCLTECH is good value based on its PE Ratio (28x) compared to the Indian IT industry average (34.4x).
PE vs Market: HCLTECH is poor value based on its PE Ratio (28x) compared to the Indian market (23.5x).
Price to Earnings Growth Ratio
PEG Ratio: HCLTECH is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: HCLTECH is overvalued based on its PB Ratio (5.8x) compared to the IN IT industry average (2.9x).
Future Growth
How is HCL Technologies forecast to perform in the next 1 to 3 years based on estimates from 39 analysts?
12.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HCLTECH's forecast earnings growth (12.1% per year) is above the savings rate (6.7%).
Earnings vs Market: HCLTECH's earnings (12.1% per year) are forecast to grow slower than the Indian market (20.6% per year).
High Growth Earnings: HCLTECH's earnings are forecast to grow, but not significantly.
Revenue vs Market: HCLTECH's revenue (11.4% per year) is forecast to grow slower than the Indian market (12.7% per year).
High Growth Revenue: HCLTECH's revenue (11.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HCLTECH's Return on Equity is forecast to be high in 3 years time (23.4%)
Past Performance
How has HCL Technologies performed over the past 5 years?
7.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCLTECH has high quality earnings.
Growing Profit Margin: HCLTECH's current net profit margins (16.1%) are lower than last year (16.8%).
Past Earnings Growth Analysis
Earnings Trend: HCLTECH's earnings have grown by 7.7% per year over the past 5 years.
Accelerating Growth: HCLTECH's earnings growth over the past year (4.7%) is below its 5-year average (7.7% per year).
Earnings vs Industry: HCLTECH earnings growth over the past year (4.7%) underperformed the IT industry 31.9%.
Return on Equity
High ROE: HCLTECH's Return on Equity (20.7%) is considered high.
Financial Health
How is HCL Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: HCLTECH's short term assets ($6.0B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: HCLTECH's short term assets ($6.0B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: HCLTECH has more cash than its total debt.
Reducing Debt: HCLTECH's debt to equity ratio has increased from 2% to 6.2% over the past 5 years.
Debt Coverage: HCLTECH's debt is well covered by operating cash flow (390.6%).
Interest Coverage: HCLTECH earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is HCL Technologies's current dividend yield, its reliability and sustainability?
1.60%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HCLTECH's dividend (1.6%) is higher than the bottom 25% of dividend payers in the Indian market (0.3%).
High Dividend: HCLTECH's dividend (1.6%) is in the top 25% of dividend payers in the Indian market (1.34%)
Stability and Growth of Payments
Stable Dividend: HCLTECH's dividend payments have been volatile in the past 10 years.
Growing Dividend: HCLTECH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.7%), HCLTECH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HCLTECH's dividends in 3 years are forecast to be covered by earnings (67% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Vijay, CVK VijayaKumar (53 yo)
5.25yrs
Tenure
Mr. C. VijayaKumar, also known as Vijay, CVK, has been the Chief Executive Officer at HCL Technologies Ltd. since October 20, 2016 and served as its Chief Operating Officer from July 2016 to October 20, 20...
Leadership Team
Experienced Management: HCLTECH's management team is considered experienced (4 years average tenure).
Board Members
Experienced Board: HCLTECH's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HCLTECH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
HCL Technologies Limited's employee growth, exchange listings and data sources
Key Information
- Name: HCL Technologies Limited
- Ticker: HCLTECH
- Exchange: NSEI
- Founded: 1976
- Industry: IT Consulting and Other Services
- Sector: Software
- Implied Market Cap: ₹3.621t
- Shares outstanding: 2.71b
- Website: https://www.hcltech.com
Number of Employees
Location
- HCL Technologies Limited
- Plot No. 3A
- Technology Hub
- Noida
- Uttar Pradesh
- 201304
- India
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 12:04 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/03/31 |
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.