HCL Technologies

HCLTECH · Nifty 50

₹1,166.8

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 18.1 (0%ile of 5Y range 18-29). Trading below historical range.

Sector Positionit sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score100/100 (STRONG). 1 positive flags, 2 concerns.

Historical Context184 similar technical setups. Average outcome: -8.1% decline. 0% positive.

Revenue TrendRevenue growing at 5.3% YoY. Moderate revenue growth — 5.3% YoY

Fundamental

100/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

HCL Technologies scores 100/100 on fundamentals (strong). HCL Technologies: PE below historical average. BROAD EXPANSION regime.

Fundamental Score: 100/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 16.5% broken into three drivers. Each shows how efficiently the company generates returns.

ROE16.5%=

12.6%Net Margin

0.8xTurnover

1.5xLeverage

ROE of 16.5% is moderate efficiency-driven and stable. Net margin of 12.6% × asset turnover of 0.84x × leverage of 1.5x.

What This Means

Net margin of 12.6% means the company keeps ₹12.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.84x means the company efficiently uses its assets to generate revenue. Leverage of 1.5x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

17.0%

Operating

17.4%

Net

12.6%

improving

Gross margin 17.0% → operating margin 17.4% → net margin 12.6%. Margins are IMPROVING.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 26.1x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.3x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin at 18.9% — strong cash generation. Business is self-funding.

Peer Comparison

HCL Technologies is compared against 10 peers in the it sector.

AFFLE COFORGE CYIENT FSL IKS INFY KAYNES KPITTECH LTIM MPHASIS

Key Watchpoints

🟢

Breaks above ₹1225 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1108 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 19.9

Valuation normalization

🟢

It sector entering leadership

Sector rotation signal

Detected Patterns

✅ High Earnings Quality: Cash flow covers earnings 1.6x — strong cash conversion

Risk Flags

⚠️ 2 Warning✅ 1 Positive3 total flags

⚠️Cash covers 26% of current liabilities

Balance Sheet

Tight liquidity. Monitor cash position and access to credit lines.

⚠️Price/Sales: 214.4x — expensive on revenue basis

Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

✅High promoter holding: 63%

Governance

Strong insider alignment. Promoters have significant skin in the game.

➡️ 3 flags — 1 positive, 2 warning. Mixed profile.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

18.1HIGH

P/B Ratio

4.0HIGH

ROE

23.4%HIGH

Market Cap

₹30023187.2L CrHIGH

From 52W High

66% of high

Promoter Holding

62.8%MODERATE

Institutional

28.5%

Sector Peers

← All Stocks Market GPS Daily Brief it Sector