HCL Technologies Ltd - Stock Valuation and Financial Performance

BSE: 532281 | NSE: HCLTECH | IT - Software | Large Cap

HCL Tech. Share Price

1,892.80 3.75 0.20%
as on 04-Dec'24 13:49

DeciZen - make an informed investing decision on HCL Tech.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

HCL Technologies stock performance -

mw4me loader
P/E Ratio (CD):
30.46
Market Cap:
5,12,624.9 Cr.
52-wk low:
1,235
52-wk high:
1,921

Is HCL Technologies Ltd an attractive stock to invest in?

1. Is HCL Technologies Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that HCL Technologies Ltd is a good quality company.

2. Is HCL Technologies Ltd undervalued or overvalued?

The key valuation ratios of HCL Technologies Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is HCL Technologies Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of HCL Technologies Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of HCL Tech.:

Analysis of Financial Track Record

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

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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 40.5%26.7%34.3%31.5%31%28.4%27.2%26.6%29.7%31.1%-
Value Creation
Index
2.61.42.11.81.81.51.41.41.61.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 36,70141,51547,56850,56960,42770,67675,37985,6511,01,4561,09,9131,13,864
Sales YoY Gr.-13.1%14.6%6.3%19.5%17%6.7%13.6%18.5%8.3%-
Adj EPS 25.425.829.629.536.440.540.848.954.157.962
YoY Gr.-1.7%14.6%-0.4%23.6%11.3%0.5%19.9%10.7%7.1%-
BVPS (₹) 85.7129.3115.5130.8152.6188.8220.7227.7239.5249.1253.8
Adj Net
Profit
7,1407,2808,4398,2049,87911,00011,05813,26214,67715,71216,827
Cash Flow from Ops. 5,5395,0978,9958,3288,97113,35919,61816,90018,00922,448-
Debt/CF from Ops. 0.10.30.10.10.50.40.20.20.10.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13%12.7%13.4%8.3%
Adj EPS 9.6%9.7%12.4%7.1%
BVPS12.6%10.3%4.1%4%
Share Price 16.7% 27.5% 17.4% 41.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Jun'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
32.621.22823.725.423.819.921.823.123.524.7
Op. Profit
Mgn %
23.121.421.822.223.124.526.62422.32222
Net Profit
Mgn %
19.417.517.716.216.415.614.715.514.514.314.8
Debt to
Equity
00000.10.10.10.1000
Working Cap
Days
18122213513913113815114012812293
Cash Conv.
Cycle
5272535553565649495358

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 24.70%

Sales growth is growing at healthy rate in last 3 years 13.40%

Net Profit is growing at healthy rate in last 3 years 12.42%

Sales growth is not so good in last 4 quarters at 7.14%

Latest Financials - HCL Technologies Ltd.

Standalone Consolidated
TTM EPS (₹) 43.5 62
TTM Sales (₹ Cr.) 49,007 1,13,864
BVPS (₹.) 134.2 253.8
Reserves (₹ Cr.) 35,867 68,332
P/BV 14.08 7.44
PE 43.42 30.46
From the Market
52 Week Low / High (₹) 1235.00 / 1921.00
All Time Low / High (₹) 12.92 / 1921.00
Market Cap (₹ Cr.) 5,12,625
Equity (₹ Cr.) 542.7
Face Value (₹) 2
Industry PE 36.2

Management X-Ray of HCL Tech.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of HCL Tech.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSJun'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales36,70131,13647,56850,56960,42770,67675,37985,6511,01,4561,09,913
Operating Expenses 28,23024,48237,18939,33046,51153,39055,35465,12578,83285,733
Manufacturing Costs7676186697589281,0291,1301,4341,6441,433
Material Costs1,2717048151,3551,6961,5361,6951,4062,0051,797
Employee Cost 17,72615,20322,86624,72929,28334,92838,85346,13055,28062,480
Other Costs 8,4667,95712,83912,48814,60415,89713,67616,15519,90320,023
Operating Profit 8,4726,65410,37911,23913,91617,28620,02520,52622,62424,180
Operating Profit Margin (%) 23.1%21.4%21.8%22.2%23.0%24.5%26.6%24.0%22.3%22.0%
Other Income 1,1408661,0781,2249536199501,0711,3621,513
Interest 91748969174505511319353553
Depreciation 4044108281,3832,0733,4204,6114,3264,1454,173
Exceptional Items 0000000000
Profit Before Tax 9,1177,04110,54211,02412,62213,98015,85316,95119,48820,967
Tax 1,8151,4391,9362,3022,5022,9234,6843,4284,6435,257
Profit After Tax 7,3025,6028,6068,72210,12011,05711,16913,52314,84515,710
PAT Margin (%) 19.9%18.0%18.1%17.2%16.7%15.6%14.8%15.8%14.6%14.3%
Adjusted EPS (₹)26.019.930.231.437.340.741.149.754.757.8
Dividend Payout Ratio (%)58%40%40%19%11%25%24%84%88%90%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSJun'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 24,10327,35332,92836,37441,36151,26759,91361,83265,01767,624
Share Capital 281282285278271543543543543543
Reserves 23,82227,07132,64336,09641,09050,72459,37061,28964,47467,081
Minority Interest82211173010315416992-78
Debt5239524383803,7014,6933,8283,9232,1112,238
Long Term Debt1687373833382,9772,8483,8283,9232,1112,223
Short Term Debt35521455427241,84500015
Trade Payables6257038019181,3051,1661,7262,2976,4285,853
Others Liabilities 14,8528,3109,7708,5149,65023,30919,37719,71318,61023,023
Total Liabilities 40,18637,53044,11046,18656,12080,58985,01387,85792,15998,746

Fixed Assets

Gross Block12,34313,76720,00024,63930,73047,23249,32150,08953,30357,504
Accumulated Depreciation4,0684,0514,7655,8867,8429,74212,17615,01218,68422,441
Net Fixed Assets8,2759,71615,23518,75322,88837,49037,14535,07734,61935,063
CWIP 55261144832023540031212940108
Investments 8696981,3062,6602,3057,0666,8626,3515,4957,137
Inventories158264276172919194161228185
Trade Receivables6,5397,7218,3019,63911,70614,13113,66315,47625,50625,521
Cash Equivalents 9,7869,3359,0444,0187,8724,9768,88812,63614,72420,150
Others Assets14,0089,1849,50010,62411,02316,43518,04918,02711,54710,582
Total Assets 40,18637,53044,11046,18656,12080,58985,01387,85792,15998,746

Cash Flow

(All Figures are in Crores.)
PARTICULARSJun'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 5,5393,8238,9958,3288,97113,35919,61816,90018,00922,448
PBT 9,1177,04110,54211,02412,62213,98015,85316,95219,48820,967
Adjustment -615-3061398941,4363,4974,1693,9403,5243,388
Changes in Working Capital -1188-1503321-1234-2466-15603041-549-13052305
Tax Paid -1,774-1,409-2,007-2,356-2,621-2,558-3,445-3,443-3,698-4,212
Cash Flow From Investing Activity -2,014-2,189-3,833-2,283-3,073-12,374-5,7301,477-3,931-6,723
Capex -1,202-748-3,811-5,321-3,434-1,829-1,753-1,555-1,444-1,016
Net Investments -718-1,056-893,980-1,924-5,671-3,136912-3,553-6,992
Others -94-38567-9422,285-4,874-8412,1201,0661,285
Cash Flow From Financing Activity -3,140-2,237-4,517-5,714-1,471-3,168-11,192-14,508-15,881-15,464
Net Proceeds from Shares 10100000000
Net Proceeds from Borrowing 47610-213-1062,970-242490-60-1,848-181
Interest Paid -24-8-19-14-71-136-139-69-80-64
Dividend Paid -2,385-2,251-3,386-1,691-1,099-1,357-3,256-11,391-12,995-14,073
Others -789-589-899-3,903-3,271-1,433-8,287-2,988-958-1,146
Net Cash Flow 385-6036453314,427-2,1832,6963,869-1,803261
PARTICULARSJun'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)33.6221.7728.5525.1726.0423.8720.0922.2223.4123.69
ROCE (%)40.5326.6734.2931.4831.0228.4227.2326.6329.7131.13
Asset Turnover Ratio10.81.171.121.181.030.910.991.131.15
PAT to CFO Conversion(x)0.760.681.050.950.891.211.761.251.211.43
Working Capital Days
Receivable Days61846165646767627485
Inventory Days1222100111
Payable Days1573453372322392943115227941,247

HCL Technologies Ltd Stock News

HCL Technologies Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HCL Tech. on 04-Dec-2024 13:49 is ₹1,892.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 04-Dec-2024 13:49 the market cap of HCL Tech. stood at ₹5,12,624.9.
The latest P/E ratio of HCL Tech. as of 04-Dec-2024 13:49 is 43.42.
The latest P/B ratio of HCL Tech. as of 04-Dec-2024 13:49 is 14.08.
The 52-week high of HCL Tech. is ₹1,921 and the 52-week low is ₹1,235.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HCL Tech. is ₹49,007 ( Cr.) .

About HCL Technologies Ltd

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.
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