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 is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on HCL Technologies here.

Flawless balance sheet average dividend payer

HCLTECH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. HCLTECH seems to have put its debt to good use, generating operating cash levels of 20.08x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

For those seeking income streams from their portfolio, HCLTECH is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 0.85%.

Next Steps:

For HCL Technologies, there are three essential factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for HCLTECH’s future growth? Take a look at our free research report of analyst consensus for HCLTECH’s outlook.
2. Historical Performance: What has HCLTECH's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HCLTECH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.