X

HCL Technologies Ltd. Stock Analysis

Large Cap
Evaluated by 9563 users | BSE: 532281 | NSE: HCLTECH |
IT - Software

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
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'11Jun'12Jun'13Jun'14Jun'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 18.69%23.57%31.26%37.54%31.61%20.6%27.27%23.35%24.21%22.2%
Value Creation Index 0.711.101.722.261.750.791.371.031.110.93
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 15,73020,83125,58132,14436,70141,51547,56850,56960,42770,676
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.) 5.998.8214.3223.0925.3925.8829.629.4536.4240.5
Y-o-Y Gr. Rt.-47.3%62.4%61.2%10%1.9%14.4%-0.5%23.7%11.2%
Book Value per Share (Rs.) 26.3433.4944.9467.7183.02129.29115.54130.84152.62188.83
Adjusted Net Profit 1,6502,4463,9926,4667,1407,3008,4468,2009,87910,991
Net Op. Cash Flow (Rs. Cr.) 1,7632,5534,4926,4575,5395,0978,9958,3288,97113,359
Debt to Cash Flow from Ops 1.240.750.230.160.120.290.060.070.470.38
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 24.517.917.823.7
Share Price 26.9% 13.5% 24.7% 45.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'11Jun'12Jun'13Jun'14Jun'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 23.6727.9734.7139.5332.6221.2127.9923.6525.4123.73
Operating Profit Margin (%) 15.6817.9122.2125.1423.1221.3721.8422.2423.0524.52
Net Profit Margin (%) 10.4911.7615.6220.1119.4117.5717.7516.1916.3515.55
Debt to Equity 0.30.230.080.050.030.040.020.020.10.1
Working Capital Days 133138157158176218135139131138
Cash Conversion Cycle 25505251527253555356
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 60.33%
Institutions 35.54%
Non-Institutions 4.09%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

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.

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 13.5% 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.

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 23.3% annually over the past ten years.

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.

Read More

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback