HCL Tech.

₹1911 -12 | 0.6%

WEBSITE BSE:532281 NSE : HCL TECHNO 09 Dec, 11:39

Market Cap ₹518581 Cr.

Stock P/E 33.0

P/B 7.5

Current Price ₹1911

Book Value ₹ 253.8

Face Value 2

52W High ₹1939.1

Dividend Yield 2.72%

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.)	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Net Sales	23464	24686	26700	26606	26296	26672	28446	28499	28057	28862
Other Income	409	236	260	453	344	365	370	416	1103	456
Total Income	23873	24922	26960	27059	26640	27037	28816	28915	29160	29318
Total Expenditure	18489	19261	20335	20743	20931	20743	21659	22382	22264	22493
Operating Profit	5384	5661	6625	6316	5709	6294	7157	6533	6896	6825
Interest	64	79	116	94	86	156	140	171	191	131
Depreciation	983	998	1137	1027	927	1010	1143	1093	998	1007
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	4337	4584	5372	5195	4696	5128	5874	5269	5707	5687
Provision for Tax	1056	1097	1276	1214	1165	1295	1523	1274	1448	1450
Profit After Tax	3281	3487	4096	3981	3531	3833	4351	3995	4259	4237
Adjustments	2	2	0	2	3	-1	-1	-9	-2	-2
Profit After Adjustments	3283	3489	4096	3983	3534	3832	4350	3986	4257	4235
Adjusted Earnings Per Share	12.1	12.9	15.1	14.7	13	14.1	16	14.7	15.7	15.6

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	TTM
Net Sales	32144	36701	31136	47568	50569	60427	70676	75379	85651	101456	109913	113864
Other Income	678	1140	866	1078	1224	953	619	950	1071	1362	1513	2345
Total Income	32822	37842	32002	48646	51793	61380	71295	76329	86722	102818	111426	116209
Total Expenditure	24109	28230	24482	37189	39330	46511	53390	55354	65125	78832	85733	88798
Operating Profit	8713	9612	7520	11457	12463	14869	17905	20975	21597	23986	25693	27411
Interest	115	91	74	89	69	174	505	511	319	353	553	633
Depreciation	681	404	410	828	1383	2073	3420	4611	4326	4145	4173	4241
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	7917	9117	7041	10542	11024	12622	13980	15853	16951	19488	20967	22537
Provision for Tax	1410	1815	1439	1936	2302	2502	2923	4684	3428	4643	5257	5695
Profit After Tax	6508	7302	5602	8606	8722	10120	11057	11169	13523	14845	15710	16842
Adjustments	2	15	1	0	-1	0	0	-24	-24	6	-8	-14
Profit After Adjustments	6510	7317	5602	8606	8721	10120	11057	11145	13499	14851	15702	16828
Adjusted Earnings Per Share	23.2	26	19.9	30.2	31.4	37.3	40.7	41	49.7	54.7	57.8	62

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	8%	13%	13%	13%
Operating Profit CAGR	7%	7%	12%	11%
PAT CAGR	6%	12%	9%	9%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	39%	18%	28%	17%
ROE Average	24%	23%	23%	26%
ROCE Average	31%	29%	29%	32%

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	19550	24224	27391	32949	36386	41366	51267	59913	61914	65405	68263
Minority's Interest	57	82	211	173	0	103	154	169	92	-7	8
Borrowings	201	168	737	383	338	2977	2848	3828	3923	2111	2223
Other Non-Current Liabilities	115	36	-638	-730	-645	-625	2590	3720	3153	3219	5526
Total Current Liabilities	13258	15676	9828	11335	10107	12299	23730	17383	18775	21431	22726
Total Liabilities	33181	40186	37530	44110	46186	56120	80589	85013	87857	92159	98746
Fixed Assets	7444	8275	9716	15235	18753	22888	37490	37145	35077	34619	35063
Other Non-Current Assets	2391	3133	2832	2412	2875	3510	4679	4817	4739	3963	4352
Total Current Assets	23346	28778	24982	26463	24558	29722	38420	43051	48041	53577	59331
Total Assets	33181	40186	37530	44110	46186	56120	80589	85013	87857	92159	98746

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	721	1027	1356	733	1321	1657	5901	3760	6521	10510	9065
Cash Flow from Operating Activities	6457	5539	3823	8995	8328	8971	13359	19618	16900	18009	22448
Cash Flow from Investing Activities	-4840	-2014	-2189	-3833	-2283	-3073	-12374	-5730	1477	-3931	-6723
Cash Flow from Financing Activities	-1308	-3140	-2237	-4517	-5714	-1471	-3168	-11192	-14508	-15881	-15464
Net Cash Inflow / Outflow	309	385	-603	645	331	4427	-2183	2696	3869	-1803	261
Closing Cash & Cash Equivalent	1027	1339	733	1321	1699	5901	3760	6521	10510	9065	9441

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)	23.25	26.02	19.86	30.2	31.37	37.34	40.73	41.05	49.72	54.7	57.83
CEPS(Rs)	25.67	27.4	21.31	33.1	36.35	44.99	53.32	58.12	65.74	69.94	73.23
DPS(Rs)	10	30	16	24	12	8	10	10	42	48	52
Book NAV/Share(Rs)	69.05	85.72	96.97	115.54	130.84	152.62	188.83	220.67	227.74	239.47	249.08
Core EBITDA Margin(%)	25	23.08	21.37	21.82	22.23	23.03	24.46	26.57	23.96	22.3	22
EBIT Margin(%)	24.99	25.09	22.85	22.35	21.94	21.18	20.49	21.71	20.16	19.56	19.58
Pre Tax Margin(%)	24.63	24.84	22.61	22.16	21.8	20.89	19.78	21.03	19.79	19.21	19.08
PAT Margin (%)	20.25	19.9	17.99	18.09	17.25	16.75	15.64	14.82	15.79	14.63	14.29
Cash Profit Margin (%)	22.36	21	19.31	19.83	19.98	20.18	20.48	20.93	20.84	18.72	18.09
ROA(%)	22.62	19.91	14.42	21.08	19.32	19.78	16.18	13.49	15.65	16.49	16.46
ROE(%)	40.32	33.62	21.77	28.55	25.17	26.04	23.87	20.09	22.22	23.41	23.69
ROCE(%)	46.19	40.53	26.67	34.29	31.48	31.02	28.42	27.23	26.63	29.71	31.13
Receivable days	57.8	60.77	83.58	61.47	64.74	64.47	66.72	67.29	62.09	73.72	84.73
Inventory Days	2.01	1.39	2.47	2.07	1.62	0.79	0.47	0.45	0.54	0.7	0.69
Payable days	154.28	157.1	344.5	336.89	231.53	239.21	293.59	311.38	522.19	794.17	1247.24
PER(x)	16.09	17.7	20.5	14.46	15.45	14.57	10.72	23.96	23.4	19.86	26.68
Price/Book(x)	5.42	5.37	4.2	3.78	3.7	3.56	2.31	4.46	5.11	4.54	6.2
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)	3.02	3.28	3.42	2.44	2.6	2.38	1.68	3.48	3.59	2.78	3.65
EV/Core EBITDA(x)	11.13	12.52	14.17	10.12	10.54	9.67	6.63	12.49	14.22	11.77	15.61
Net Sales Growth(%)	25.65	14.18	-15.16	52.78	6.31	19.49	16.96	6.65	13.63	18.45	8.34
EBIT Growth(%)	49.42	14.65	-22.74	49.43	4.37	15.35	13.2	12.97	5.54	14.89	8.46
PAT Growth(%)	60.9	12.2	-23.29	53.63	1.37	16.03	9.26	1.01	21.08	9.78	5.83
EPS Growth(%)	60.4	11.93	-23.67	52.04	3.89	19.04	9.06	0.8	21.12	10.02	5.73
Debt/Equity(x)	0.05	0.03	0.04	0.02	0.02	0.1	0.1	0.07	0.06	0.03	0.03
Current Ratio(x)	1.76	1.84	2.54	2.33	2.43	2.42	1.62	2.48	2.56	2.5	2.61
Quick Ratio(x)	1.75	1.83	2.52	2.31	2.41	2.41	1.62	2.47	2.55	2.49	2.6
Interest Cover(x)	70.15	100.93	96.27	119.45	160.77	73.54	28.68	32.02	54.14	56.21	38.92
Total Debt/Mcap(x)	0.01	0.01	0.01	0	0	0.03	0.04	0.01	0.01	0.01	0.01

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 23%
Company is almost debt free.

Cons

Debtor days have increased from 794.17 to 1247.24days.
Stock is trading at 7.5 times its book value.
The company has delivered a poor profit growth of 9% 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.