HCL Tech.

₹1316.3 -7.8 | 0.6%

WEBSITE BSE:532281 NSE : HCL TECHNO 10 May, 16:01

Market Cap ₹357186 Cr.

Stock P/E 22.8

P/B 5.2

Current Price ₹1316.3

Book Value ₹ 251.6

Face Value 2

52W High ₹1696.5

Dividend Yield 3.95%

52W Low ₹ 1062.7

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.)	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Net Sales	22331	22597	23464	24686	26700	26606	26296	26672	28446	28499
Other Income	255	317	409	236	260	453	344	365	370	416
Total Income	22586	22914	23873	24922	26960	27059	26640	27037	28816	28915
Total Expenditure	16938	17544	18489	19261	20335	20743	20931	20743	21659	22382
Operating Profit	5648	5370	5384	5661	6625	6316	5709	6294	7157	6533
Interest	82	65	64	79	116	94	86	156	140	171
Depreciation	1136	984	983	998	1137	1027	927	1010	1143	1093
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	4430	4321	4337	4584	5372	5195	4696	5128	5874	5269
Provision for Tax	982	721	1056	1097	1276	1214	1165	1295	1523	1274
Profit After Tax	3448	3600	3281	3487	4096	3981	3531	3833	4351	3995
Adjustments	-6	-7	2	2	0	2	3	-1	-1	-9
Profit After Adjustments	3442	3593	3283	3489	4096	3983	3534	3832	4350	3986
Adjusted Earnings Per Share	12.7	13.2	12.1	12.9	15.1	14.7	13	14.1	16	14.7

HCL Tech. Profit & Loss

#(Fig in Cr.)	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Net Sales	25581	32144	36701	31136	47568	50569	60427	70676	75379	85651	101456	109913
Other Income	358	678	1140	866	1078	1224	953	619	950	1071	1362	1495
Total Income	25939	32822	37842	32002	48646	51793	61380	71295	76329	86722	102818	111408
Total Expenditure	19927	24109	28230	24482	37189	39330	46511	53390	55354	65125	78832	85715
Operating Profit	6012	8713	9612	7520	11457	12463	14869	17905	20975	21597	23986	25693
Interest	106	115	91	74	89	69	174	505	511	319	353	553
Depreciation	637	681	404	410	828	1383	2073	3420	4611	4326	4145	4173
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	5270	7917	9117	7041	10542	11024	12622	13980	15853	16951	19488	20967
Provision for Tax	1225	1410	1815	1439	1936	2302	2502	2923	4684	3428	4643	5257
Profit After Tax	4045	6508	7302	5602	8606	8722	10120	11057	11169	13523	14845	15710
Adjustments	-4	2	15	1	0	-1	0	0	-24	-24	6	-8
Profit After Adjustments	4040	6510	7317	5602	8606	8721	10120	11057	11145	13499	14851	15702
Adjusted Earnings Per Share	14.5	23.2	26	19.9	30.2	31.4	37.3	40.7	41	49.7	54.7	57.8

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	18%	13%	15%	15%
Operating Profit CAGR	11%	10%	14%	15%
PAT CAGR	10%	10%	11%	14%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	22%	13%	19%	14%
ROE Average	23%	22%	23%	27%
ROCE Average	30%	28%	29%	33%

HCL Tech. Balance Sheet

#(Fig in Cr.)	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Shareholder's Funds	13164	19550	24224	27391	32949	36386	41366	51267	59913	61914	65405
Minority's Interest	45	57	82	211	173	0	103	154	169	92	-7
Borrowings	797	201	168	737	383	338	2977	2848	3828	3923	2111
Other Non-Current Liabilities	178	115	36	-638	-730	-645	-625	2590	3720	3153	3219
Total Current Liabilities	10170	13258	15676	9828	11335	10107	12299	23730	17383	18775	21431
Total Liabilities	24354	33181	40186	37530	44110	46186	56120	80589	85013	87857	92159
Fixed Assets	6753	7444	8275	9716	15235	18753	22888	37490	37145	35077	34619
Other Non-Current Assets	2271	2391	3133	2832	2412	2875	3510	4679	4817	4739	3963
Total Current Assets	15330	23346	28778	24982	26463	24558	29722	38420	43051	48041	53577
Total Assets	24354	33181	40186	37530	44110	46186	56120	80589	85013	87857	92159

HCL Tech. Cash Flow

#(Fig in Cr.)	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Opening Cash & Cash Equivalents	677	721	1027	1356	733	1321	1657	5901	3760	6521	10510
Cash Flow from Operating Activities	4492	6457	5539	3823	8995	8328	8971	13359	19618	16900	18009
Cash Flow from Investing Activities	-2354	-4840	-2014	-2189	-3833	-2283	-3073	-12374	-5730	1477	-3931
Cash Flow from Financing Activities	-2086	-1308	-3140	-2237	-4517	-5714	-1471	-3168	-11192	-14508	-15881
Net Cash Inflow / Outflow	52	309	385	-603	645	331	4427	-2183	2696	3869	-1803
Closing Cash & Cash Equivalent	721	1027	1339	733	1321	1699	5901	3760	6521	10510	9065

HCL Tech. Ratios

#	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Earnings Per Share (Rs)	14.49	23.25	26.02	19.86	30.2	31.37	37.34	40.73	41.05	49.72	54.7
CEPS(Rs)	16.79	25.67	27.4	21.31	33.1	36.35	44.99	53.32	58.12	65.74	69.94
DPS(Rs)	12	10	30	16	24	12	8	10	10	42	48
Book NAV/Share(Rs)	46.44	69.05	85.72	96.97	115.54	130.84	152.62	188.83	220.67	227.74	239.47
Core EBITDA Margin(%)	22.1	25	23.08	21.37	21.82	22.23	23.03	24.46	26.57	23.96	22.3
EBIT Margin(%)	21.01	24.99	25.09	22.85	22.35	21.94	21.18	20.49	21.71	20.16	19.56
Pre Tax Margin(%)	20.6	24.63	24.84	22.61	22.16	21.8	20.89	19.78	21.03	19.79	19.21
PAT Margin (%)	15.81	20.25	19.9	17.99	18.09	17.25	16.75	15.64	14.82	15.79	14.63
Cash Profit Margin (%)	18.3	22.36	21	19.31	19.83	19.98	20.18	20.48	20.93	20.84	18.72
ROA(%)	18.45	22.62	19.91	14.42	21.08	19.32	19.78	16.18	13.49	15.65	16.49
ROE(%)	35.93	40.32	33.62	21.77	28.55	25.17	26.04	23.87	20.09	22.22	23.41
ROCE(%)	40.99	46.19	40.53	26.67	34.29	31.48	31.02	28.42	27.23	26.63	29.71
Receivable days	59.73	57.8	60.77	83.58	61.47	64.74	64.47	66.72	67.29	62.09	63.04
Inventory Days	3.27	2.01	1.39	2.47	2.07	1.62	0.79	0.47	0.45	0.54	0.7
Payable days	165.66	154.28	157.1	344.5	336.89	231.53	239.21	293.59	311.38	522.19	439
PER(x)	13.39	16.09	17.7	20.5	14.46	15.45	14.57	10.72	23.96	23.4	19.86
Price/Book(x)	4.18	5.42	5.37	4.2	3.78	3.7	3.56	2.31	4.46	5.11	4.54
Dividend Yield(%)	1.55	0.67	3.26	1.97	2.75	1.24	0.74	2.29	1.02	3.61	4.42
EV/Net Sales(x)	2.02	3.02	3.28	3.42	2.44	2.6	2.38	1.68	3.48	3.59	2.78
EV/Core EBITDA(x)	8.57	11.13	12.52	14.17	10.12	10.54	9.67	6.63	12.49	14.22	11.77
Net Sales Growth(%)	22.81	25.65	14.18	-15.16	52.78	6.31	19.49	16.96	6.65	13.63	18.45
EBIT Growth(%)	60.35	49.42	14.65	-22.74	49.43	4.37	15.35	13.2	12.97	5.54	14.89
PAT Growth(%)	66.64	60.9	12.2	-23.29	53.63	1.37	16.03	9.26	1.01	21.08	9.78
EPS Growth(%)	65.91	60.4	11.93	-23.67	52.04	3.89	19.04	9.06	0.8	21.12	10.02
Debt/Equity(x)	0.08	0.05	0.03	0.04	0.02	0.02	0.1	0.1	0.07	0.06	0.03
Current Ratio(x)	1.51	1.76	1.84	2.54	2.33	2.43	2.42	1.62	2.48	2.56	2.5
Quick Ratio(x)	1.49	1.75	1.83	2.52	2.31	2.41	2.41	1.62	2.47	2.55	2.49
Interest Cover(x)	50.89	70.15	100.93	96.27	119.45	160.77	73.54	28.68	32.02	54.14	56.21
Total Debt/Mcap(x)	0.02	0.01	0.01	0.01	0	0	0.03	0.04	0.01	0.01	0.01

HCL Tech. Shareholding Pattern

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	60.33	60.72	60.72	60.72	60.72	60.81	60.81	60.81	60.81	60.81
FII	20.43	18.97	17.91	17.17	18.29	18.92	18.98	18.8	19.42	19.65
DII	13.75	14.7	15.56	16.54	15.88	15.3	15.35	15.64	15.14	14.98
Public	5.48	5.62	5.82	5.57	5.12	4.97	4.85	4.75	4.62	4.56
Others	0	0	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100	100	100

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	163.72	164.76	164.76	164.76	164.76	165.03	165.03	165.03	165.03	165.03
FII	55.44	51.48	48.59	46.6	49.63	51.34	51.51	51.01	52.7	53.31
DII	37.32	39.89	42.22	44.88	43.08	41.52	41.67	42.44	41.09	40.64
Public	14.88	15.24	15.79	15.12	13.89	13.47	13.16	12.89	12.55	12.38
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 22%
Debtor days have improved from 522.19 to 439days.
Company has reduced debt.
Company is almost debt free.

Cons

Stock is trading at 5.2 times its book value.

* 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.