it · HCLTECH
HCL Technologies
HCL Technologies: PE below historical average. NARROW LEADERSHIP regime. sector leading.
Price
₹1,352.7
Price 2026-07-30
5 day
+6.43%
Short-term move
1 month
+26.21%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹316.1k Cr
inflow sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect HCL Technologies (HCLTECH) in the it sector?”
Price chart
₹1,319
-20.45% over period
About HCL Technologies
HCL Technologies Limited provides IT and business services, engineering, research and development services, software products, and IP-led offerings. It operates through IT and Business Services, Engineering and R&D Services, and HCL Software segments. The company provides application development, management, modernization, and testing services, as well as commercial applications; automation services, including digital integration, business process management, robotic process automation for intelligent automation, and low- and no-code services; digital process operations, such as customer experience management, hyper intelligent automation, supply chain management, finance and accounting, marketing operations and content, and human resource services; and data and AI services that consist of strategy and advisory, modernize data, simplify insights, and scale AI. It also offers commercial applications for sales, accounting, finance, HR, inventory, and manufacturing operations; cybersecurity services; systems engineering, simulation process and data management, manufacturing engineering, supplier collaboration, and digital thread and twin, as well as application, service, and produc...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -8.1% over 14 days) — not a reliable pattern.
52-week position
Trading at 76% of 52-week high
Technicals
RSI 14
82
Trend
mixed
50 DMA
Above
200 DMA
Below
Key metrics
P/E ratio
19.0
14th pct · 7 quarterly points (limited history)
P/B
4.2
ROE
23.4%
Strong profitability — 23.4% return on equity
Market cap
₹316.1k Cr
Revenue growth
530.0% YoY
Promoter
62.7%
52-week range
₹1,030 – ₹1,780.1
76% of high
RSI (14)
82.0
mixed
vs 50 DMA
Above
DMA ₹1,169.61
Fundamental
95/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
HCL Technologies scores 95/100 on fundamentals (strong). HCL Technologies: PE below historical average. NARROW LEADERSHIP regime. sector leading.
Fundamental Score: 95/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 17.5% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 17.54% is moderate efficiency-driven and stable. Net margin 12.9%, asset turnover 0.88x, leverage 1.5x.
What This Means
Net margin of 12.9% means the company keeps ₹12.9 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.88x 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
22.7%
Operating
17.4%
Net
12.9%
Gross margin 22.7% → operating margin 17.4% → net margin 12.9%. Margins are stable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 1.5x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 33.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 18.1% — strong cash generation. Business is self-funding.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| INFY Infosys | ₹1,155.1 | +10.3% | 14.2 | 31.4% | 660% | ₹4.3L Cr |
| COFORGE Coforge | ₹1,742.9 | +21.3% | 34.6 | 18.6% | 3050% | ₹67.1k Cr |
| IKS Inventurus Knowledge | ₹1,782.3 | -0.9% | 44.8 | 31.4% | 1850% | ₹31.7k Cr |
| KAYNES Kaynes Technology | ₹3,621.5 | +11.8% | 60.9 | 9.6% | 2620% | ₹22.2k Cr |
| AFFLE Affle India | ₹1,622.7 | +11.1% | 45.6 | 13.8% | 2030% | ₹20.7k Cr |
| FSL Firstsource Solutions | ₹299.62 | +17.1% | 25.5 | 15.9% | 1950% | ₹16.8k Cr |
| KPITTECH KPIT Technologies | ₹589.75 | +7.0% | 24.2 | 19.7% | 1200% | ₹15.3k Cr |
| CYIENT Cyient | ₹847.7 | +2.0% | 22 | 7.8% | 90% | ₹9.4k Cr |
| HCLTECH HCL Technologies | ₹1,352.7 | +8.7% | 19 | 23.4% | 530% | ₹3.2L Cr |
Tensions to watch
PE in bottom 14% historically — undervaluation or fundamental deterioration?
Low PE can signal value OR declining growth expectations. Check recent earnings and sector outlook.
Key Watchpoints
Breaks above ₹1420 (+5%)
Trend reversal confirmation
Breaks below ₹1285 (-5%)
Further downside risk
PE reverts to median of 23.8 (7 quarterly points (limited history))
Valuation normalization
It sector holding leadership position
Sector momentum continuing
Detected Patterns
Risk Flags
Tight liquidity. Monitor cash position and access to credit lines.
High revenue multiple. Market pricing in significant growth or margins expansion.
Strong insider alignment. Promoters have significant skin in the game.
➡️ 3 flags — 1 positive, 2 warning. Mixed profile.
Data Quality
News Correlation
50 articles scanned for fundamental themes
