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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 quality company, based on a 10 year financial track record.
Q.3 Is HCL Infosystems Ltd undervalued or overvalued?
HCL Infosystems Ltd appears Fair, as its key valuation ratios are in line with their past averages.
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

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 -71% , 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 with its 5 year median of -327.67%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -423.8 -373.8
Operating Profit Margin -1315.31 -514.25
Net Profit Margin -644.68 -327.67
Q.5 Return on Asset of HCL Infosystems Ltd?
HCL Infosystems Ltd Return on Asset is -9.66(x), which is in line with its 5 year historical median of -9.66(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of HCL Infosystems Ltd?
HCL Infosystems Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of HCL Infosystems Ltd?
HCL Infosystems Ltd Cash conversion cycle is -635 , below its historical median of -505 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.02 0.02
ROE - -
ROCE -29.46 -24.73
Cash Conversion Cycle -635 -505
Q.9 Debt to Equity ratio of HCL Infosystems Ltd?
HCL Infosystems Ltd Debt-to-Equity ratio is -1.21 , which is lower with 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, indicating the business is not able to service its debt comfortably.

Ownership & governance

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)

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 Industry Median
Revenue 3.4 13.3
Gross Profit -12.7 0.4
Operating Profit -45 0
Net Profit -22 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.02 0.5
ROE - 2.03
ROCE -29.46 3.6
Cash Conversion Cycle -634.84 41

Valuation & price assessment

Q.1 Stock return of HCL Infosystems Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -12.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -12.5% 6.6% -3.2% -3.8%
Q.3 Valuation ratios of HCL Infosystems Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 21.75
Price to Book -1.3 0.00 1.55
Price to Sales 403.53 0.25 1.87
EV to EBITDA -292.06 0.00 13.67

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