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HCL Technologies Ltd

NSE: HCLTECH BSE: 532281

1695.30

(1.10)%

Wed, 04 Feb 2026, 00:25 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (6.2x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
  • HCL Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • HCL Technologies's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN IT industry average.
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Cons

  • Cash flow for HCL Technologies is expected to increase but not above the 50% threshold in 2 years time.
  • HCL Technologies's earnings are expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
  • HCL Technologies's earnings growth is positive but not above the India market average.
  • HCL Technologies's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • HCL Technologies's earnings are expected to decrease over the next year.
  • HCL Technologies's earnings are expected to increase but not above the low risk growth rate in 3 years time
  • HCL Technologies's net income is expected to increase but not above the 50% threshold in 2 years time.
  • HCL Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in HCL Technologies's performance (ROE) is expected over the next 3 years.
  • HCL Technologies's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • HCL Technologies's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • HCL Technologies's revenue growth is positive but not above the India market average.

health

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Pros

  • HCL Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HCL Technologies is profitable, therefore cash runway is not a concern.
  • HCL Technologies is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (259%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 7.5x debt.
  • HCL Technologies's cash and other short term assets cover its long term commitments.
  • HCL Technologies earns more interest than it pays, coverage of interest payments is not a concern.
  • HCL Technologies's level of debt (9.8%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (1.8% vs 9.8% today).

management

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Pros

  • The tenure for the HCL Technologies board of directors is about average.
  • The tenure for the HCL Technologies management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • HCL Technologies has significant price volatility in the past 3 months.

      past

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      Pros

      • HCL Technologies's 1-year earnings growth exceeds its 5-year average (7.9% vs 6.4%)
      • HCL Technologies's year on year earnings growth rate has been positive over the past 5 years.
      • HCL Technologies used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
      • HCL Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
      • HCL Technologies's earnings growth has exceeded the IN IT industry average in the past year (7.9% vs 6%).
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      Cons

      • HCL Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

      value

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      Pros

      • 532281 outperformed the IT industry which returned -10.1% over the past year.
      • 532281 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:532281 is up 13.6% outperforming the IT industry which returned 8.5% over the past month.
      • BSE:532281 is up 13.6% outperforming the market in India which returned 8% over the past month.
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      Cons

      • HCL Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • HCL Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • HCL Technologies is overvalued based on assets compared to the IN IT industry average.
      • HCL Technologies is poor value based on expected growth next year.
      • HCL Technologies is overvalued based on earnings compared to the IN IT industry average.
      • HCL Technologies is overvalued based on earnings compared to the India market.

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