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HCLT

HCL TechnologiesNSEI:HCLTECH Stock Report

Last Price

₹1.34k

Market Cap

₹3.6t

7D

3.6%

1Y

35.1%

Updated

16 Jan, 2022

Data

Company Financials +
HCLTECH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends5/6

HCLTECH Stock Overview

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

HCL Technologies Competitors

Tata Consultancy Services

NSEI:TCS

₹14.7t

Infosys

NSEI:INFY

₹8.1t

Wipro

BSE:507685

₹3.5t

Tech Mahindra

NSEI:TECHM

₹1.5t

Price History & Performance

Summary of all time highs, changes and price drops for HCL Technologies
Historical stock prices
Current Share Price₹1,337.20
52 Week High₹1,377.75
52 Week Low₹891.00
Beta0
1 Month Change14.15%
3 Month Change9.48%
1 Year Change35.10%
3 Year Change176.77%
5 Year Change218.86%
Change since IPO1,276.38%

Recent News & Updates

Dec 28
There Are Reasons To Feel Uneasy About HCL Technologies' (NSE:HCLTECH) Returns On Capital

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...

Nov 22
Here's Why I Think HCL Technologies (NSE:HCLTECH) Might Deserve Your Attention Today

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...

Oct 17
Is HCL Technologies (NSE:HCLTECH) A Risky Investment?

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

HCLTECHIN ITIN Market
7D3.6%1.7%2.2%
1Y35.1%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

Is HCLTECH's price volatile compared to industry and market?
HCLTECH volatility
HCLTECH Average Weekly Movement3.4%
IT Industry Average Movement8.0%
Market Average Movement6.7%
10% most volatile stocks in IN Market9.8%
10% least volatile stocks in IN Market4.1%

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

FoundedEmployeesCEOWebsite
1976168,977Vijay, CVK VijayaKumarhttps://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

How do HCL Technologies's earnings and revenue compare to its market cap?
HCLTECH fundamental statistics
Market CapUS$48.87b
Earnings (TTM)US$1.75b
Revenue (TTM)US$10.82b

28.0x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HCLTECH income statement (TTM)
RevenueUS$10.82b
Cost of RevenueUS$6.58b
Gross ProfitUS$4.24b
ExpensesUS$2.49b
EarningsUS$1.75b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.64
Gross Margin39.19%
Net Profit Margin16.14%
Debt/Equity Ratio6.2%

How did HCLTECH perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 12:04
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.