Reasons Why I Like HCL Technologies Limited (NSE:HCLTECH)

Simply Wall St July 9, 2018
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.

NSEI:HCLTECH Historical Debt July 9th 18
NSEI:HCLTECH Historical Debt July 9th 18

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%.

NSEI:HCLTECH Historical Dividend Yield July 9th 18
NSEI:HCLTECH Historical Dividend Yield July 9th 18

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!