HCL Infosystems Ltd (HCL-INSYS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Smartlink Hold.

DC Infotech

Panache Digilife

B C C Fuba India

TVS Elec.

Reganto Enterpri

Control Print

Bharat Global

HCL Infosystems

Nanta Tech

EPW India

Why is HCL Infosystems Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -42.80% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of -5.62 times

The company has declared Negative results for the last 3 consecutive quarters

PAT(Q) At Rs -13.74 cr has Fallen at -101.2% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at -1.12 times
INTEREST(Q) At Rs 4.64 cr has Grown at 463,999,900.00%

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -59.24 cr
Over the past year, while the stock has generated a return of -34.03%, its profits have fallen by -16.2%
The stock is trading risky as compared to its average historical valuations

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.03% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is HCL Infosystems for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

HCL Infosystems

-34.03%

-0.83

41.15%

Sensex

-10.14%

-0.76

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-42.80%

EBIT Growth (5y)

12.06%

EBIT to Interest (avg)

-1.04

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.41

Tax Ratio

5.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

37.91%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-1.35

EV to EBIT

-8.73

EV to EBITDA

-8.78

EV to Capital Employed

-2.93

EV to Sales

24.08

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

NET SALES(Q)

At Rs 5.28 cr has Grown at 74.5% (vs previous 4Q average

-14What is not working for the Company

PAT(Q)

At Rs -13.74 cr has Fallen at -101.2% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at -1.12 times

INTEREST(Q)

At Rs 4.64 cr has Grown at 463,999,900.00%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.33 times

PBT LESS OI(Q)

Lowest at Rs -21.55 cr.

EPS(Q)

Lowest at Rs -0.40

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Here's what is working for HCL Infosystems

Net Sales - Quarterly

At Rs 5.28 cr has Grown at 74.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 3.03 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for HCL Infosystems

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -21.55 cr has Fallen at -51.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -14.24 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -13.74 cr has Fallen at -101.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -6.83 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 4.64 cr has Grown at 463,999,900.00%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at -1.12 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest - Quarterly

Highest at Rs 4.64 cr

in the last five quarters and Increased by 463,999,900.00 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -21.55 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.40

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 1.33 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio