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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 weak quality company, based on a inconsistent 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 -70.98%, indicating faster growth.
Q.2 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.3 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.4 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.5 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 0.02 0.02
ROE - -53.94
ROCE -29.46 -24.73
Cash Conversion Cycle -635 days -505 days
Q.6 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.7 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.8 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 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
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 0.17, 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

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 12.68%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth -28.6 12.7
Gross Profit Growth 0 18.5
Operating Profit Growth 0 15.2
Net Profit Growth 0 16.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 0.02 0.81
ROE - 2.6
ROCE -29.46 3.8
Cash Conversion Cycle (days) -634.84 61

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 -10.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
-10.9% 7.7% -2.6% -7.4%
Q.3 Valuation ratios of HCL Infosystems Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 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 - 22.41 33.44
Price to Book -1.3 -2.07 1.58
Price to Sales 401.57 100.53 2.20
EV to EBITDA -291.27 -58.38 14.05

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