HCL Technologies Ltd (HCLTECH) 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

Coforge

Infosys

LTM

L&T Technology

Persistent Syste

TCS

HCL Technologies

Hexaware Tech.

Wipro

Tech Mahindra

Mphasis

Why is HCL Technologies Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.11%

Healthy long term growth as Net Sales has grown by an annual rate of 11.61%
The company is Net-Debt Free

Flat results in Jun 26

DEBTORS TURNOVER RATIO(HY) Lowest at 5.52 times

With ROE of 23.1, it has a Fair valuation with a 4.9 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.68%, its profits have risen by 6.8% ; the PEG ratio of the company is 3
At the current price, the company has a high dividend yield of 4.4

High Institutional Holdings at 33.68%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 3.72% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.68% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HCL Technologies should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is HCL Technologies for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

HCL Technologies

-8.55%

-0.31

28.33%

Sensex

-2.61%

-0.18

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.61%

EBIT Growth (5y)

8.19%

EBIT to Interest (avg)

40.12

Debt to EBITDA (avg)

0.25

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.45

Tax Ratio

24.27%

Dividend Payout Ratio

88.10%

Pledged Shares

Institutional Holding

33.68%

ROCE (avg)

39.38%

ROE (avg)

23.11%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.90

EV to EBIT

14.75

EV to EBITDA

12.45

EV to Capital Employed

6.86

EV to Sales

2.55

PEG Ratio

2.98

Dividend Yield

4.42%

ROCE (Latest)

44.70%

ROE (Latest)

23.08%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

NET SALES(Q)

Highest at Rs 34,579.00 cr

PBT LESS OI(Q)

At Rs 5,747.00 cr has Grown at 21.42%

PAT(Q)

At Rs 4,624.00 cr has Grown at 20.3%

EPS(Q)

Highest at Rs 17.03

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.52 times

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Here's what is working for HCL Technologies

Net Sales - Quarterly

Highest at Rs 34,579.00 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 5,747.00 cr has Grown at 21.42%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 4,624.00 cr has Grown at 20.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 17.03

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for HCL Technologies

Debtors Turnover Ratio- Half Yearly

Lowest at 5.52 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio