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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of HCL Technologies Ltd

About the Company - HCL Technologies Ltd

HCL Technologies Ltd. is a Public Limited Listed company incorporated on 12/11/1991 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74140DL1991PLC046369 and registration number is 046369. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 40638.00 Cr. and Equity Capital is Rs. 543.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software806, Siddharth, 96, Nehru Place, New Delhi Delhi 110019investors@hcl.com
http://www.hcltech.com
Management
NamePosition Held
Ms. Roshni Nadar MalhotraNon Exe. Non Ind Chairperson
Mr. Shiv NadarChairman Emeritus
Mr. C VijayakumarManaging Director & CEO
Mr. Shikhar MalhotraNon Exe.Non Ind.Director
Ms. Robin Ann AbramsInd. Non-Executive Director
Dr. Sosale Shankara SastryInd. Non-Executive Director
Mr. Subramanian MadhavanInd. Non-Executive Director
Mr. Thomas SieberInd. Non-Executive Director
Ms. Nishi VasudevaInd. Non-Executive Director
Mr. Deepak KapoorInd. Non-Executive Director
Dr. Mohan ChellappaInd. Non-Executive Director
Mr. Simon John EnglandInd. Non-Executive Director
Ms. Vanitha NarayananInd. Non-Executive Director
Mr. R SrinivasanInd. Non-Executive Director

HCL Technologies Ltd. Share Price Update

Share PriceValue
Today₹1,655.45
Previous Day₹1,666.15

Basic Stock Data of HCL Technologies Ltd

Market Cap 4,54,023 Cr.
Current Price 1,673
High / Low1,696/1,016
Stock P/E28.9
Book Value 242
Dividend Yield3.16 %
ROCE28.3 %
ROE23.0 %
Face Value 2.00

Data Source: screener.in

HCL Technologies Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales18,59419,30219,64120,06820,65522,33122,59723,46424,68626,70026,60626,29626,672
Expenses13,47613,67815,09215,00615,63316,93817,54518,48919,26120,33520,74320,93120,743
Operating Profit5,1185,6244,5495,0625,0225,3935,0524,9755,4256,3655,8635,3655,929
OPM %28%29%23%25%24%24%22%21%22%24%22%20%22%
Other Income199189244255240255317409236260453344365
Interest801471598983826564791169486156
Depreciation1,0921,1871,2671,1281,0781,1369849839981,1371,0279271,010
Profit before tax4,1454,4793,3674,1004,1014,4304,3204,3374,5845,3725,1954,6965,128
Tax %24%11%67%22%20%22%17%24%24%24%23%25%25%
Net Profit3,1463,9771,1113,2133,2633,4483,5993,2813,4874,0963,9813,5313,833
EPS in Rs11.5814.634.0611.8112.0112.6813.2412.1012.8615.0914.6813.0214.12

HCL Technologies Ltd Quarterly Chart

HCL Technologies Ltd Profit & Loss

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales20,83125,58132,14436,70131,13647,56850,56960,42770,67675,37985,651101,456106,274
Expenses17,13519,90124,10828,21524,48237,17839,32346,50153,36055,33165,12278,82882,752
Operating Profit3,6955,6808,0358,4866,65410,39011,24613,92617,31620,04820,52922,62823,522
OPM %18%22%25%23%21%22%22%23%24%27%24%22%22%
Other Income2063326771,1268711,0691,2309435899271,0671,3581,422
Interest14310611491748969174505511319353452
Depreciation5496376814044108281,3832,0733,4204,6114,3264,1454,101
Profit before tax3,2105,2707,9179,1177,04110,54211,02412,62213,98015,85316,95119,48820,391
Tax %24%23%18%20%20%18%21%20%21%30%20%24%
Net Profit2,4234,0406,5287,3425,6028,6068,72210,12011,05711,16913,52314,84515,441
EPS in Rs8.7414.4923.2526.0219.8630.1631.3237.3140.7541.0749.7454.7356.91
Dividend Payout %34%21%11%58%40%40%19%11%25%24%84%88%

HCL Technologies Ltd Profit & Loss Yearly Chart

HCL Technologies Ltd Growth

Compounded Sales Growth
10 Years:17%
5 Years:15%
3 Years:13%
TTM:11%
Compounded Profit Growth
10 Years:20%
5 Years:11%
3 Years:10%
TTM:9%
Stock Price CAGR
10 Years:16%
5 Years:26%
3 Years:22%
1 Year:54%
Return on Equity
10 Years:24%
5 Years:23%
3 Years:22%
Last Year:23%

HCL Technologies Ltd Balance Sheet

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital139139140281282285278271543543543543543
Reserves9,69913,02519,41023,94327,10932,66436,10841,09550,72459,37061,37164,86265,140
Borrowings2,1791,0441,0186481,0905825574,1957,9866,8646,3434,7945,268
Other Liabilities6,3208,1919,41210,37210,85912,23111,04612,78823,56619,27020,66423,05122,628
Total Liabilities18,33822,39929,98035,24539,34145,76247,98958,34982,81986,04788,92193,25093,579
Fixed Assets6,4536,7537,4448,2759,71615,23518,75322,88837,49037,14535,07734,61935,834
CWIP5784945315526114483202354003121294056
Investments6737136628696981,3062,6602,3057,0666,8626,3515,4955,583
Other Assets10,63314,44021,34325,54828,31528,77326,25632,92137,86341,72847,36453,09652,106
Total Assets18,33822,39929,98035,24539,34145,76247,98958,34982,81986,04788,92193,25093,579

HCL Technologies Ltd Reserves and Borrowings Chart

HCL Technologies Ltd Cash Flow

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2,4184,4926,4575,5393,8238,9958,3288,97113,35919,61816,90018,009
Cash from Investing Activity -1,026-2,361-4,842-2,088-2,208-3,890-2,236-3,256-12,332-5,6651,597-3,573
Cash from Financing Activity -1,239-2,086-1,308-3,140-2,237-4,517-5,714-1,471-3,168-11,192-14,508-15,881
Net Cash Flow15344307311-6235883784,244-2,1412,7613,989-1,445

HCL Technologies Ltd Financial Efficiency Indicators

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days686465659164707173858892
Inventory Days
Days Payable
Cash Conversion Cycle686465659164707173858892
Working Capital Days91510296438594927524847
ROCE %31%41%45%40%28%34%31%31%27%26%25%28%

HCL Technologies Ltd Financial Efficiency Indicators Chart

HCL Technologies Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters60.33%60.33%60.33%60.33%60.33%60.72%60.72%60.72%60.72%60.82%60.82%60.82%
FIIs24.92%24.14%23.22%22.30%20.43%18.97%17.91%17.17%18.29%18.92%18.98%18.80%
DIIs10.25%10.54%11.34%12.47%13.74%14.68%15.54%16.52%15.85%15.28%15.33%15.62%
Government0.04%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
Public4.46%4.97%5.09%4.88%5.28%5.38%5.59%5.34%4.89%4.74%4.63%4.54%
Others0.00%0.00%0.00%0.00%0.20%0.23%0.23%0.23%0.23%0.23%0.23%0.21%
No. of Shareholders3,61,3525,17,8476,35,9496,53,5927,78,1129,08,0559,95,79610,89,3179,91,5489,40,0799,09,3598,79,120

HCL Technologies Ltd Shareholding Pattern Chart

No. of HCL Technologies Ltd Shareholders

HCL Technologies Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF196413821.612506.24
Parag Parikh Flexi Cap Fund180106205.222298.16
HDFC Flexi Cap Fund - Regular Plan155500005.041984.18
SBI S&P BSE Sensex ETF138348731.861766.51
Mirae Asset Large Cap Fund82082033.051047.37
ICICI Prudential Technology Fund68916398.09879.37
Aditya Birla Sun Life Flexi Cap Fund57912564.34738.96
ICICI Prudential Bluechip Fund54310281.68693
Mirae Asset Emerging Bluechip Fund48023542.18612.78
HDFC ELSS Tax Saver Fund46000005.21586.96

HCL Technologies Ltd ROCE Trend

HCL Technologies Ltd EPS Trend

HCL Technologies Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)54.8549.7741.0740.7573.58
Diluted EPS (Rs.)54.7949.7741.0740.7573.55
Cash EPS (Rs.)69.9465.7558.1253.3289.99
Book Value[Excl.RevalReserv]/Share (Rs.)240.88228.38221.30189.40306.04
Book Value[Incl.RevalReserv]/Share (Rs.)240.88228.38221.30189.40306.04
Revenue From Operations / Share (Rs.)373.69315.47277.64260.32445.96
PBDIT / Share (Rs.)88.3579.5577.2665.95109.73
PBIT / Share (Rs.)73.0863.6160.2753.3594.44
PBT / Share (Rs.)71.7862.4458.3951.4993.15
Net Profit / Share (Rs.)54.6849.8141.1440.7374.69
NP After MI And SOA / Share (Rs.)54.7049.7241.0540.7374.69
PBDIT Margin (%)23.6425.2127.8225.3324.60
PBIT Margin (%)19.5520.1621.7020.4921.17
PBT Margin (%)19.2019.7921.0319.7820.88
Net Profit Margin (%)14.6315.7814.8115.6416.74
NP After MI And SOA Margin (%)14.6315.7614.7815.6416.74
Return on Networth / Equity (%)22.7021.8018.6021.5624.46
Return on Capital Employeed (%)27.5624.5823.7824.4727.65
Return On Assets (%)15.8915.1612.9313.3317.27
Long Term Debt / Equity (X)0.030.060.060.050.07
Total Debt / Equity (X)0.030.060.060.090.08
Asset Turnover Ratio (%)0.640.580.510.580.60
Current Ratio (X)2.502.562.481.622.42
Quick Ratio (X)2.492.552.471.622.41
Dividend Payout Ratio (NP) (%)87.5084.3829.2212.2710.85
Dividend Payout Ratio (CP) (%)68.4063.9020.679.379.01
Earning Retention Ratio (%)12.5015.6270.7887.7389.15
Cash Earning Retention Ratio (%)31.6036.1079.3390.6390.99
Interest Coverage Ratio (X)67.9567.7041.0535.4685.45
Interest Coverage Ratio (Post Tax) (X)43.0543.3922.8622.9059.16
Enterprise Value (Cr.)282423.30307290.53262115.68118448.63143356.00
EV / Net Operating Revenue (X)2.783.593.481.682.37
EV / EBITDA (X)11.7714.2312.506.629.64
MarketCap / Net Operating Revenue (X)2.913.693.541.682.44
Retention Ratios (%)12.4915.6170.7787.7289.14
Price / BV (X)4.515.104.462.313.56
Price / Net Operating Revenue (X)2.913.693.541.682.44
EarningsYield0.050.040.040.090.06

HCL Technologies Ltd Profitability Ratios (%)

HCL Technologies Ltd Liquidity Ratios

HCL Technologies Ltd Liquidity Ratios (%)

HCL Technologies Ltd Interest Coverage Ratios (%)

HCL Technologies Ltd Valuation Ratios

Fair Value of HCL Technologies Ltd Stock

Fair Value: ₹1659.40

The stock is overvalued by 0.81% compared to the current price ₹1673

*Investments are subject to market risks

Strength and Weakness of HCL Technologies Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 32.25%, which is a positive sign.
  2. The company has higher reserves (38,809.23 cr) compared to borrowings (3,274.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (56.77 cr) and profit (11.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 68.95 and average Dividend Yield of 20.61%.
  2. The stock has a high average Working Capital Days of 37.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 74.67, which may not be favorable.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in HCL Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE