HCL Technologies
Market Cap
₹2.6t
Last Updated
2021/03/08 12:08 UTC
Data Sources
Company Financials +
Executive Summary
HCL Technologies Limited offers software development, business process outsourcing, and infrastructure management services worldwide. More Details
Rewards
Risk Analysis
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
| HCLTECH | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | 3.8% | 1.9% |
| 30 Day | 1.7% | 2.3% | 4.4% |
| 90 Day | 11.4% | 15.0% | 14.8% |
| 1 Year | 80.6%78.0% | 88.4%85.1% | 50.4%47.8% |
| 3 Year | 105.2%98.8% | 107.5%96.1% | 28.0%21.5% |
| 5 Year | 150.6%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
1 week ago | Simply Wall St
Are Strong Financial Prospects The Force That Is Driving The Momentum In HCL Technologies Limited's NSE:HCLTECH) Stock?3 weeks ago | Simply Wall St
Here's Why I Think HCL Technologies (NSE:HCLTECH) Is An Interesting Stock1 month ago | Simply Wall St
The HCL Technologies (NSE:HCLTECH) Share Price Is Up 110% And Shareholders Are Boasting About ItValuation
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%)
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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.
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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).
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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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 4.42yrs | no data | 0.013% $ 343.1m | |
| Founder | 28.17yrs | US$146.08k | 0.018% $ 466.3m | |
| Chief Financial Officer | 2.42yrs | US$398.41k | 0.000040% $ 1.0m | |
| Senior VP | no data | US$166.00k | 0.0014% $ 34.7m | |
| Chief Human Resources Officer | 3.17yrs | US$459.61k | 0.00096% $ 24.5m | |
| President of Engineering and R&D Services | no data | US$409.13k | no data | |
| Executive Vice President of Business Finance | no data | US$416.74k | no data | |
| Executive Vice President of Taxation | no data | US$521.16k | no data | |
| Executive Vice President of Applications & Systems Integration | no data | US$172.07k | 0.00038% $ 9.7m | |
| Executive Vice President of Digital & Analytics | no data | US$200.23k | 0.0016% $ 39.9m | |
| President of Applications & System Integration Services Delivery | no data | US$460.13k | no data | |
| Executive Vice President of Applications & Systems Integration | no data | US$141.05k | 0.0010% $ 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 28.17yrs | US$146.08k | 0.018% $ 466.3m | |
| Non-Executive & Independent Director | 21.5yrs | US$171.32k | no data | |
| Non-Executive & Independent Director | 9.92yrs | US$160.69k | no data | |
| Non-Executive & Independent Director | 4.58yrs | US$86.32k | no data | |
| Additional Independent Director | 1.58yrs | US$92.96k | no data | |
| Non-Executive & Independent Director | 5.42yrs | US$132.80k | no data | |
| Non-Executive & Independent Director | 8.67yrs | US$136.79k | no data | |
| Non-Executive & Independent Director | 8.17yrs | US$110.23k | 0.00018% $ 4.6m | |
| Chairperson | 0.67yr | US$100.93k | 0.000030% $ 766.5k | |
| Non-Executive Non-Independent Director | 1.42yrs | US$29.22k | no data | |
| Non-Executive & Independent Director | 3.67yrs | US$84.99k | no data | |
| Additional Independent Director | 1.17yrs | US$29.22k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532281 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jan 2000 |
| HCLTECH | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/08 12:08 |
| End of Day Share Price | 2021/03/08 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
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.