NSEI:HCLTECH

Stock Analysis Report

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Executive Summary

HCL Technologies Limited offers software development, business process outsourcing, and infrastructure management services worldwide. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has HCL Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCLTECH is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HCLTECH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

HCLTECH

3.8%

IN IT

1.9%

IN Market


1 Year Return

78.0%

HCLTECH

85.1%

IN IT

47.8%

IN Market

Return vs Industry: HCLTECH exceeded the Indian IT industry which returned 75.2% over the past year.

Return vs Market: HCLTECH exceeded the Indian Market which returned 40.6% over the past year.


Shareholder returns

HCLTECHIndustryMarket
7 Day3.4%3.8%1.9%
30 Day1.7%2.3%4.4%
90 Day11.4%15.0%14.8%
1 Year80.6%78.0%88.4%85.1%50.4%47.8%
3 Year105.2%98.8%107.5%96.1%28.0%21.5%
5 Year150.6%132.4%145.6%123.0%93.4%78.6%

Long-Term Price Volatility Vs. Market

How volatile is HCL Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HCL Technologies undervalued compared to its fair value and its price relative to the market?

20x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HCLTECH (₹961.9) is trading above our estimate of fair value (₹585.87)

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 (20x) compared to the IN IT industry average (23.2x).

PE vs Market: HCLTECH is poor value based on its PE Ratio (20x) compared to the Indian market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HCLTECH is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: HCLTECH is overvalued based on its PB Ratio (4.3x) compared to the IN IT industry average (1.3x).


Next Steps

Future Growth

How is HCL Technologies forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCLTECH's forecast earnings growth (9.5% per year) is above the savings rate (7%).

Earnings vs Market: HCLTECH's earnings (9.5% per year) are forecast to grow slower than the Indian market (25.4% per year).

High Growth Earnings: HCLTECH's earnings are forecast to grow, but not significantly.

Revenue vs Market: HCLTECH's revenue (10.8% per year) is forecast to grow slower than the Indian market (14.5% per year).

High Growth Revenue: HCLTECH's revenue (10.8% 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 (21.8%)


Next Steps

Past Performance

How has HCL Technologies performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCLTECH has high quality earnings.

Growing Profit Margin: HCLTECH's current net profit margins (17.8%) are higher than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: HCLTECH's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: HCLTECH's earnings growth over the past year (19.8%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: HCLTECH earnings growth over the past year (19.8%) exceeded the IT industry -1.4%.


Return on Equity

High ROE: HCLTECH's Return on Equity (21.5%) is considered high.


Next Steps

Financial Health

How is HCL Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: HCLTECH's short term assets ($5.5B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: HCLTECH's short term assets ($5.5B) exceed its long term liabilities ($955.9M).


Debt to Equity History and Analysis

Debt Level: HCLTECH's debt to equity ratio (5.1%) is considered satisfactory.

Reducing Debt: HCLTECH's debt to equity ratio has increased from 0.7% to 5.1% over the past 5 years.

Debt Coverage: HCLTECH's debt is well covered by operating cash flow (628.7%).

Interest Coverage: HCLTECH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HCLTECH's dividend (0.7%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: HCLTECH's dividend (0.7%) is low compared to the top 25% of dividend payers in the Indian market (1.77%).


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 (28.6%), 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 well covered by earnings (34.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Vijay, CVK VijayaKumar

4.42yrs

Tenure

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 Octob...


Leadership Team

NamePositionTenureCompensationOwnership
C. VijayaKumar
President & CEO4.42yrsno data0.013%
$ 343.1m
Shiv Nadar
Founder28.17yrsUS$146.08k0.018%
$ 466.3m
Prateek Aggarwal
Chief Financial Officer2.42yrsUS$398.41k0.000040%
$ 1.0m
Manish Anand
Senior VPno dataUS$166.00k0.0014%
$ 34.7m
Apparao Varre
Chief Human Resources Officer3.17yrsUS$459.61k0.00096%
$ 24.5m
Gade Rao
President of Engineering and R&D Servicesno dataUS$409.13kno data
Goutam Rungta
Executive Vice President of Business Financeno dataUS$416.74kno data
Amit Roy
Executive Vice President of Taxationno dataUS$521.16kno data
Rangarajan Vijayaraghavan
Executive Vice President of Applications & Systems Integrationno dataUS$172.07k0.00038%
$ 9.7m
Amitava Sengupta
Executive Vice President of Digital & Analyticsno dataUS$200.23k0.0016%
$ 39.9m
Ajit Kumar
President of Applications & System Integration Services Deliveryno dataUS$460.13kno data
Surya Pawan Vadapalli
Executive Vice President of Applications & Systems Integrationno dataUS$141.05k0.0010%
$ 26.1m

3.2yrs

Average Tenure

55yo

Average Age

Experienced Management: HCLTECH's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shiv Nadar
Founder28.17yrsUS$146.08k0.018%
$ 466.3m
Robin Abrams
Non-Executive & Independent Director21.5yrsUS$171.32kno data
Ramanathan Srinivasan
Non-Executive & Independent Director9.92yrsUS$160.69kno data
Nishi Vasudeva
Non-Executive & Independent Director4.58yrsUS$86.32kno data
Mohan Chellappa
Additional Independent Director1.58yrsUS$92.96kno data
Thomas Sieber
Non-Executive & Independent Director5.42yrsUS$132.80kno data
Sosale Sastry
Non-Executive & Independent Director8.67yrsUS$136.79kno data
Subramanian Madhavan
Non-Executive & Independent Director8.17yrsUS$110.23k0.00018%
$ 4.6m
Roshni Malhotra
Chairperson0.67yrUS$100.93k0.000030%
$ 766.5k
Shikhar Malhotra
Non-Executive Non-Independent Director1.42yrsUS$29.22kno data
Deepak Kapoor
Non-Executive & Independent Director3.67yrsUS$84.99kno data
Simon England
Additional Independent Director1.17yrsUS$29.22kno data

5.0yrs

Average Tenure

64yo

Average Age

Experienced Board: HCLTECH's board of directors are considered experienced (5 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 company bio, 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
  • Market Cap: ₹2.555t
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532281BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2000
HCLTECHNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2000

Biography

HCL Technologies Limited offers software development, business process outsourcing, and infrastructure management services worldwide. It provides application development and maintenance services; SAP lands...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 12:08
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.