What is CAGR? What does CAGR table indicate for HCL Technologies Ltd?

Compounded average growth rate (CAGR) measures the average annual growth rate compounded year-on-year over a period of time.

HCL Technologies Ltd Stock Analysis

Large Cap

Evaluated by 10262 users | BSE: 532281 | NSE: HCLTECH |
IT - Software

Decision Maker

Consolidated basis

The valuation guidance of this company is based on Consolidated basis.

1. Right Stock

2. Right Price

Price Chart

3. Right Time

10 Year X-Ray

Consolidated basis Standalone basis P Consolidated basis P

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

What is a Financial Track Record? How to read this chart in order to understand the data present here?

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.

HCL Technologies Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation Value Creation Index Colour Code Guide

	Jun'11	Jun'12	Jun'13	Jun'14	Jun'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Capital Employed	18.69%	23.29%	30.95%	37.54%	31.61%	20.6%	27.27%	23.36%	24.21%	22.2%
Value Creation Index	0.71	1.07	1.69	2.26	1.75	0.79	1.37	1.03	1.11	0.93

Growth Parameters	Growth Parameters Colour Code Guide

Net Sales (Rs. Cr.)	15,730	20,831	25,581	32,144	36,701	41,515	47,568	50,569	60,427	70,676
Y-o-Y Gr. Rt.	-	32.4%	22.8%	25.7%	14.2%	13.1%	14.6%	6.3%	19.5%	17%
Adjusted EPS (Rs.)	5.99	8.82	14.32	23.09	25.39	25.88	29.59	29.46	36.42	40.5
Y-o-Y Gr. Rt.	-	47.3%	62.4%	61.2%	10%	1.9%	14.3%	-0.4%	23.6%	11.2%
Book Value per Share (Rs.)	27.03	34.52	46.44	69.05	85.72	129.29	115.54	130.84	152.62	188.83
Adjusted Net Profit	1,650	2,446	3,992	6,466	7,140	7,300	8,445	8,204	9,879	10,991
Net Op. Cash Flow (Rs. Cr.)	1,763	2,553	4,492	6,457	5,539	5,097	8,995	8,328	8,971	13,359
Debt to Cash Flow from Ops	1.24	0.85	0.23	0.16	0.12	0.29	0.06	0.07	0.47	0.38

Difference between Standalone Basis and Consolidated basis? Which method is preferred for HCL Technologies Ltd. ?

Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.

HCL Technologies Ltd. should be analysed on a Consolidated basis

CAGR CAGR Colour Code Guide

	9 yrs	5 yrs	3 yrs	1 yr
Net Sales	18.2%	14%	14.1%	17%
Adjusted EPS	23.7%	9.8%	11%	11.2%
Book Value per Share	24.1	17.1	17.8	23.7
Share Price	26.1%	20.5%	29.2%	71.1%

Key Financial Parameter	Performance Ratio Colour Code Guide

	Jun'11	Jun'12	Jun'13	Jun'14	Jun'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Equity (%)	23.67	27.97	34.71	39.53	32.62	21.21	27.99	23.67	25.41	23.73
Operating Profit Margin (%)	15.68	17.91	22.21	25.14	23.12	21.37	21.84	22.24	23.05	24.52
Net Profit Margin (%)	10.49	11.76	15.62	20.11	19.41	17.57	17.75	16.2	16.35	15.55
Debt to Equity	0.29	0.23	0.08	0.05	0.03	0.04	0.02	0.02	0.1	0.1
Working Capital Days	136	142	162	162	181	222	135	139	131	138
Cash Conversion Cycle	25	50	52	51	52	72	53	55	53	56

Management X-Ray

Corporate Governance What do we look at?

Corporate Governance

Board Credentials

Promoter's holding

Transparency

Integrity

Shareholding Pattern

Entity	Percentage Holding
Promoters	60.33%
Institutions	34.70%
Non-Institutions	4.97%

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

FAQs

1. Is HCL Technologies Ltd a good quality company?

MoneyWorks4Me analysed the past 10-year performance of HCL Technologies Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that HCL Technologies Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

2. Is current market price of HCL Technologies Ltd a good price to buy it?

The 5-year analysis of HCL Technologies Ltd's performance infers:

HCL Technologies Ltd earnings have grown by 9.8%, whereas share price has appreciated 20.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

3. What is HCL Technologies Ltd share price return in the past 10 years ?

We analysed the performance of HCL Technologies Ltd share prices over the last 10 years. Here is what we found out:

HCL Technologies Ltd share price has appreciated 23.7% annually over the past ten years.

About Company

HCL Technologies Ltd. is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age. HCL also takes pride in its many diversity, social responsibility, sustainability, and education initiatives. Through its worldwide network of R&D facilities and co-innovation labs, global delivery capabilities, HCL delivers holistic services across industry verticals to leading enterprises.

Business area of the company

HCL Technologies is a leading global IT services company. Enterprises across industries stand at an inflection point. In order to thrive in the digital age, technologies such as analytics, cloud, IoT, and automation occupy center stage. In order to offer enterprises the maximum benefit of these technologies to further their business objectives, HCL offers an integrated portfolio of products and services through three business units. These are IT and Business Services (ITBS), Engineering and R&D Services (ERS), and Products and Platforms (P&P).

ITBS enables global enterprises to transform their businesses via Digital Foundation, Its modernized infrastructure stack built around hybrid cloud, software-defined networks, the digital workplace, and other elements; Digital Business, a combination of its application services and consulting capabilities; and Digital Operations, a three-pronged setup for modernized and efficient operations at enterprise level. ERS offers engineering services and solutions in all aspects of product development and platform engineering. Under P&P, HCL provides modernized software products to global clients for their technological and industry-specific requirements.

Products/Services of the company

IT Infrastructure Management Services
Applications
Engineering and R&D Services
Digital Process Operations
Cloud Native Services
Cybersecurity
Digital & Analytics
DRYiCE
IoT WoRKS
HCL Software
SIAM/XaaS Products & Advanced Services
Enterprise Studio

Awards

HCL Samuday and Project Clean NOIDA awarded Fabulous Global Smart Cities Leaders at the 9th edition of the World CSR Day Congress and Awards.
Won the Asia-Pacific Enterprise Leadership Award (APELA) 2013.
Conferred the United Nations-Women Empowerment (UN-WEP) Leadership Award 2013.
Wins IT Europa European IT Excellence Awards 2013.
Ranks among the Top 10 Solution Providers in Consumer Goods Technology’s 2013 Readers’ Choice Awards.
Wins the ICSI National Award for Excellence in Corporate Governance, for 2012.
In 2012, for the fourth time in a row, WorldBlu lists HCL as one of the Most Democratic Workplaces in the World.
Won the Nasscom Innovation Award 2012 for Market Facing Innovation.
In 2012, it was recognized as one of Britain’s Top Employers for the 5th consecutive year, for its innovative Employees First philosophy.
HCL Customer Standard Parking Wins Oracle’s ‘Empower the Green Enterprise’ Award.
HCL Receives 6 HR Congress Awards 2008 - a recognition for having great human resources practices.
HCL received the NASSCOM Corporate Award for ‘Excellence in Gender Inclusion’.
HCL has been recognized by Jobsforher for Top 5 Most Innovative Practices: DivHERsity Programs.
HCL has been recognized as the Best 50 People Capital Index (PCI) companies for 2019.