HCL Tech.

₹1900.9 4.5 | 0.2%

WEBSITE BSE:532281 NSE : HCL TECHNO 26 Dec, 16:01

Market Cap ₹515827 Cr.

Stock P/E 32.8

P/B 14.2

Current Price ₹1900.9

Book Value ₹ 134.2

Face Value 2

52W High ₹1979.5

Dividend Yield 2.74%

52W Low ₹ 1235

Edit Ratio

HCL Tech. Research see more...

HCL Technologies Ltd.

Equity Research Report - HCL Technologies Limited

Overview Inc. Year: 1991Industry: IT - Software

HCL Technologies Limited is an primarily India-based technology company. The Company gives its services and products via 3 enterprise segments: IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products & Platforms (P&P). ITBS phase provides a portfolio of IT and commercial enterprise services, along with software, infrastructure and digital procedure operations and virtual transformation offerings enabled by way of virtual and analytics, IoTWoRKs, cloud native and cybersecurity solutions together with merchandise developed within those corporations. ERS section gives engineering offerings and solutions across software program, embedded, mechanical, very large-scale integration (VLSI) and platform engineering that support the end-to-end lifecycle of merchandise, inclusive of both hardware and software program across various industries. P&P section offers modernized software program products to global customers for their technology and industry-precise necessities.

HCL Tech. Share Price

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Peer Comparison

HCL Tech. Quarterly Results

#(Fig in Cr.)
Net Sales
Other Income
Total Income
Total Expenditure
Operating Profit
Interest
Depreciation
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Adjustments
Profit After Adjustments
Adjusted Earnings Per Share

HCL Tech. Profit & Loss

#(Fig in Cr.)	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Net Sales	16497	17153	13435	19318	22073	26012	32666	35673	40638	46276	48118
Other Income	660	1200	969	960	703	810	613	983	880	1031	1076
Total Income	17157	18353	14403	20278	22776	26822	33279	36656	41518	47307	49194
Total Expenditure	9187	10294	8299	11469	12735	15599	19902	21256	25526	30033	31242
Operating Profit	7970	8059	6104	8809	10041	11223	13377	15400	15992	17274	17952
Interest	82	61	46	55	23	16	240	177	109	127	125
Depreciation	491	300	277	478	893	1276	1959	2813	2615	2431	2371
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	7398	7699	5782	8276	9125	9931	11178	12410	13268	14716	15456
Provision for Tax	1413	1353	1062	1403	1763	1746	2209	3667	2394	3257	3782
Profit After Tax	5985	6346	4719	6873	7362	8185	8969	8743	10874	11459	11674
Adjustments	0	0	0	0	0	0	0	0	0	0	0
Profit After Adjustments	5985	6346	4719	6873	7362	8185	8969	8743	10874	11459	11674
Adjusted Earnings Per Share	21.4	22.6	16.7	24.1	26.5	30.2	33	32.2	40.1	42.2	43

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	4%	10%	13%	11%
Operating Profit CAGR	4%	5%	10%	8%
PAT CAGR	2%	10%	7%	7%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	30%	14%	28%	17%
ROE Average	29%	27%	26%	29%
ROCE Average	39%	35%	34%	36%

HCL Tech. Balance Sheet

#(Fig in Cr.)	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Shareholder's Funds	15753	19406	21497	25973	27563	30439	37546	43553	42591	41104	39470
Minority's Interest	0	0	0	0	0	0	0	0	0	0	0
Borrowings	27	27	28	31	33	32	160	207	164	51	26
Other Non-Current Liabilities	379	264	-629	-759	-977	-1501	97	914	889	995	2347
Total Current Liabilities	8940	10298	4513	5915	4693	6379	14005	10019	9043	10667	10464
Total Liabilities	25100	29995	25408	31160	31312	35349	51808	54693	52687	52817	52307
Fixed Assets	2449	3064	2816	7989	10428	11235	22643	20905	19524	17935	16333
Other Non-Current Assets	5048	5459	4952	5055	5436	5407	5321	6074	6276	6311	6429
Total Current Assets	17603	21472	17640	18116	15448	18707	23844	27714	26887	28571	29545
Total Assets	25100	29995	25408	31160	31312	35349	51808	54693	52687	52817	52307

HCL Tech. Cash Flow

#(Fig in Cr.)	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Opening Cash & Cash Equivalents	156	241	433	125	352	210	4528	1294	2876	2907	2374
Cash Flow from Operating Activities	6147	5336	3154	6995	6339	8676	9911	15765	10591	13538	15282
Cash Flow from Investing Activities	-4656	-1763	-771	-2643	-973	995	-11140	-4548	2232	-798	-2331
Cash Flow from Financing Activities	-1398	-3360	-2699	-4112	-5547	-5335	-1997	-9649	-12775	-13267	-14480
Net Cash Inflow / Outflow	94	212	-315	240	-181	4336	-3226	1568	48	-527	-1529
Closing Cash & Cash Equivalent	241	433	125	352	210	4523	1294	2876	2907	2374	837

HCL Tech. Ratios

#	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Earnings Per Share (Rs)	21.37	22.57	16.73	24.12	26.48	30.2	33.04	32.2	40.05	42.21	43
CEPS(Rs)	23.13	23.63	17.71	25.79	29.69	34.91	40.25	42.56	49.68	51.16	51.73
DPS(Rs)	10	30	16	24	12	8	10	10	42	48	52
Book NAV/Share(Rs)	55.5	68.58	76.07	91.06	99.1	112.3	138.29	160.42	156.57	149.97	143.02
Core EBITDA Margin(%)	44.31	39.99	38.23	40.63	42.31	40.03	39.07	40.41	37.19	35.1	35.07
EBIT Margin(%)	45.34	45.23	43.38	43.13	41.44	38.24	34.95	35.28	32.92	32.07	32.38
Pre Tax Margin(%)	44.84	44.88	43.03	42.84	41.34	38.18	34.22	34.79	32.65	31.8	32.12
PAT Margin (%)	36.28	37	35.13	35.58	33.35	31.47	27.46	24.51	26.76	24.76	24.26
Cash Profit Margin (%)	39.25	38.74	37.19	38.05	37.4	36.37	33.45	32.39	33.19	30.02	29.19
ROA(%)	27.91	23.04	17.04	24.3	23.57	24.56	20.58	16.42	20.25	21.72	22.21
ROE(%)	46.83	36.45	23.16	28.99	27.52	28.23	26.39	21.56	25.27	27.54	29.35
ROCE(%)	55.02	43.39	28.44	35.04	34.12	34.24	33.48	30.89	30.9	35.29	38.56
Receivable days	65.64	72.37	104.09	80.32	81.4	81.89	76.93	65.19	44.1	69.08	95.09
Inventory Days	1.08	1.06	2.88	2.06	1.07	0.41	0.18	0.17	0.18	0.23	0.23
Payable days	322.96	528.15	1452.98	1051.24	998.9	3239.38	5497.52	6537.18	4370.27	4291.09	6452.95
PER(x)	17.5	20.41	24.33	18.1	18.3	18.01	13.22	30.54	29.05	25.74	35.89
Price/Book(x)	6.74	6.72	5.35	4.79	4.89	4.84	3.16	6.13	7.43	7.24	10.79
Dividend Yield(%)	0.67	3.26	1.97	2.75	1.24	0.74	2.29	1.02	3.61	4.42	3.37
EV/Net Sales(x)	5.9	7.04	7.91	6.03	6	5.43	3.6	7.35	7.66	6.24	8.55
EV/Core EBITDA(x)	12.22	14.98	17.4	13.22	13.19	12.58	8.78	17.02	19.46	16.72	22.92
Net Sales Growth(%)	31.79	3.98	-21.68	43.79	14.26	17.85	25.58	9.21	13.92	13.87	3.98
EBIT Growth(%)	65.19	3.74	-24.9	42.96	9.81	8.73	14.79	10.24	6.28	10.96	4.97
PAT Growth(%)	65.72	6.04	-25.64	45.64	7.11	11.18	9.58	-2.52	24.37	5.38	1.88
EPS Growth(%)	64.98	5.58	-25.87	44.15	9.81	14.05	9.38	-2.52	24.37	5.38	1.88
Debt/Equity(x)	0.04	0	0	0	0	0	0	0.01	0.01	0	0
Current Ratio(x)	1.97	2.09	3.91	3.06	3.29	2.93	1.7	2.77	2.97	2.68	2.82
Quick Ratio(x)	1.97	2.08	3.88	3.05	3.28	2.93	1.7	2.76	2.97	2.68	2.82
Interest Cover(x)	91.6	127.95	127.18	151.47	397.74	621.69	47.58	71.11	122.72	116.87	124.65
Total Debt/Mcap(x)	0.01	0	0	0	0	0	0	0	0	0	0

HCL Tech. Shareholding Pattern

#	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoter	60.72	60.72	60.72	60.81	60.81	60.81	60.81	60.81	60.81	60.81
FII	17.91	17.17	18.29	18.92	18.98	18.8	19.42	19.65	18.45	18.67
DII	15.56	16.54	15.88	15.3	15.35	15.64	15.14	14.98	15.79	15.79
Public	5.82	5.57	5.12	4.97	4.85	4.75	4.62	4.56	4.95	4.72
Others	0	0	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100	100	100

#	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoter	164.76	164.76	164.76	165.03	165.03	165.03	165.03	165.03	165.03	165.03
FII	48.59	46.6	49.63	51.34	51.51	51.01	52.7	53.31	50.06	50.66
DII	42.22	44.88	43.08	41.52	41.67	42.44	41.09	40.64	42.86	42.86
Public	15.79	15.12	13.89	13.47	13.16	12.89	12.55	12.38	13.42	12.81
Others	0	0	0	0	0	0	0	0	0	0
Total	271.37	271.37	271.37	271.37	271.37	271.37	271.37	271.37	271.37	271.37

Pros

Company has a good return on equity (ROE) track record: 3 Years ROE 27%
Company has reduced debt.
Company is almost debt free.

Cons

Debtor days have increased from 4291.09 to 6452.95days.
Stock is trading at 14.2 times its book value.
The company has delivered a poor profit growth of 7% over past five years.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.