Check Before You Invest : HCL Infosystems Ltd

Q: Which industry/sub-sector does HCL Infosystems Ltd belong to?

HCL Infosystems Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q: Is HCL Infosystems Ltd a good quality company?

HCL Infosystems Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is HCL Infosystems Ltd undervalued or overvalued?

HCL Infosystems Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: -1.19, Historic Median: -2.00. Price to Sales, Current: 446.51, Historic Median: 102.97. EV to EBITDA, Current: -1231.51, Historic Median: -49.08

Q: Is HCL Infosystems Ltd a good buy now?

HCL Infosystems Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of HCL Infosystems Ltd?

HCL Infosystems Ltd revenue growth is -28.6% for FY-2025, which is above its 5-year CAGR of -70.98%, indicating faster growth.

Q: Gross Profit margin of HCL Infosystems Ltd?

HCL Infosystems Ltd Gross profit margin which is the profit after deduction of direct costs, is -423.8% for FY-2025, which is below its 5-year median of -373.8%, indicating decreasing margins.

Q: Operating Profit Margin of HCL Infosystems Ltd?

HCL Infosystems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1315.31% for FY-2025, which is below its 5-year median of -514.25% indicating decreasing margins.

Q: Net Profit Margin of HCL Infosystems Ltd?

HCL Infosystems Ltd Net Profit Margin is -644.68% for FY-2025, is below its 5-year median of -327.67%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: -423.8, Historic Median: -373.8. Operating Profit Margin (%), Current: -1315.31, Historic Median: -514.25. Net Profit Margin (%), Current: -644.68, Historic Median: -327.67

Q: Return on Asset of HCL Infosystems Ltd?

HCL Infosystems Ltd Return on Asset is -9.66%, which is in line with its 5-year historical median of -9.66%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of HCL Infosystems Ltd?

HCL Infosystems Ltd Return on capital employed is -29.46% for FY-2025, which is below its 5-year historical median of -24.73%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : HCL Infosystems Ltd

BSE: 500179 NSE: HCL-INSYS ISIN: INE236A01020

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does HCL Infosystems Ltd belong to?

HCL Infosystems Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is HCL Infosystems Ltd a good quality company?

HCL Infosystems Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is HCL Infosystems Ltd undervalued or overvalued?

HCL Infosystems Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	-
Price to Book	-1.19	-2.00
Price to Sales	446.51	102.97
EV to EBITDA	-1231.51	-49.08

Q.4 Is HCL Infosystems Ltd a good buy now?

HCL Infosystems Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of HCL Infosystems Ltd?

HCL Infosystems Ltd revenue growth is -28.6% for FY-2025, which is above its 5-year CAGR of -70.98%, indicating faster growth.

Q.2 Gross Profit margin of HCL Infosystems Ltd?

HCL Infosystems Ltd Gross profit margin which is the profit after deduction of direct costs, is -423.8% for FY-2025, which is below its 5-year median of -373.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of HCL Infosystems Ltd?

HCL Infosystems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1315.31% for FY-2025, which is below its 5-year median of -514.25% indicating decreasing margins.

Q.4 Net Profit Margin of HCL Infosystems Ltd?

HCL Infosystems Ltd Net Profit Margin is -644.68% for FY-2025, is below its 5-year median of -327.67%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	-423.8	-373.8
Operating Profit Margin (%)	-1315.31	-514.25
Net Profit Margin (%)	-644.68	-327.67

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of HCL Infosystems Ltd?

HCL Infosystems Ltd Return on Asset is -9.66%, which is in line with its 5-year historical median of -9.66%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of HCL Infosystems Ltd?

HCL Infosystems Ltd Return on capital employed is -29.46% for FY-2025, which is below its 5-year historical median of -24.73%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of HCL Infosystems Ltd?

HCL Infosystems Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -53.94%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of HCL Infosystems Ltd?

HCL Infosystems Ltd Cash conversion cycle is -635 days, below its 5-year historical median of -505 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.02	0.02
ROE (%)	-	-53.94
ROCE (%)	-29.46	-24.73
Cash Conversion Cycle	-635 days	-505 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of HCL Infosystems Ltd?

HCL Infosystems Ltd Debt-to-Equity ratio is -1.21, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of HCL Infosystems Ltd?

HCL Infosystems Ltd Debt to cash flow from operations is -24.95, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of HCL Infosystems Ltd?

Q.1 Promoter shareholding and pledge status of HCL Infosystems Ltd?

Promoters hold 62.89% of the HCL Infosystems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does HCL Infosystems Ltd performance compare with that of its Peers?

Q.1 Revenue growth of HCL Infosystems Ltd vs industry peers?

HCL Infosystems Ltd revenue CAGR is -70.98%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-28.6	-
Gross Profit Growth (%)	0	17.7
Operating Profit Growth (%)	0	16.1
Net Profit Growth (%)	0	17.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.02	0.52
ROE (%)	-	2.05
ROCE (%)	-29.46	3.6
Cash Conversion Cycle (days)	-634.84	46

Valuation & price assessment

Q.1 Stock return of HCL Infosystems Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -11.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-11.5%	4.9%	-3.1%	-39%

Q.2 Valuation ratios of HCL Infosystems Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-	33.62
Price to Book	-1.19	-2.00	1.57
Price to Sales	446.51	102.97	2.21
EV to EBITDA	-1231.51	-49.08	14.09

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Check Before You Invest : HCL Infosystems Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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