HCL Tech.

₹1248.4 -12.9 | 1%

WEBSITE BSE:532281 NSE : HCL TECHNO 28 Sep, 16:01

Market Cap ₹338680 Cr.

Stock P/E 22.4

P/B 4.9

Current Price ₹1248.4

Book Value ₹ 252.6

Face Value 2

52W High ₹1311

Dividend Yield 3.85%

52W Low ₹ 910.7

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.)	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023
Net Sales	19641	20068	20655	22331	22597	23464	24686	26700	26606	26296
Other Income	244	255	240	255	317	409	236	260	453	344
Total Income	19885	20323	20895	22586	22914	23873	24922	26960	27059	26640
Total Expenditure	15092	15006	15633	16938	17544	18489	19261	20335	20743	20931
Operating Profit	4793	5317	5262	5648	5370	5384	5661	6625	6316	5709
Interest	159	89	83	82	65	64	79	116	94	86
Depreciation	1267	1128	1078	1136	984	983	998	1137	1027	927
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	3367	4100	4101	4430	4321	4337	4584	5372	5195	4696
Provision for Tax	2256	887	838	982	721	1056	1097	1276	1214	1165
Profit After Tax	1111	3213	3263	3448	3600	3281	3487	4096	3981	3531
Adjustments	-9	-8	-4	-6	-7	2	2	0	2	3
Profit After Adjustments	1102	3205	3259	3442	3593	3283	3489	4096	3983	3534
Adjusted Earnings Per Share	4.1	11.8	12	12.7	13.2	12.1	12.9	15.1	14.7	13

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	104288
Other Income	358	678	1140	866	1078	1224	953	619	950	1071	1362	1293
Total Income	25939	32822	37842	32002	48646	51793	61380	71295	76329	86722	102818	105581
Total Expenditure	19927	24109	28230	24482	37189	39330	46511	53390	55354	65125	78832	81270
Operating Profit	6012	8713	9612	7520	11457	12463	14869	17905	20975	21597	23986	24311
Interest	106	115	91	74	89	69	174	505	511	319	353	375
Depreciation	637	681	404	410	828	1383	2073	3420	4611	4326	4145	4089
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	5270	7917	9117	7041	10540	11024	12622	13980	15853	16951	19488	19847
Provision for Tax	1225	1410	1815	1439	1936	2302	2502	2923	4684	3428	4643	4752
Profit After Tax	4045	6508	7302	5602	8604	8722	10120	11057	11169	13523	14845	15095
Adjustments	-4	2	15	1	2	-1	0	0	-24	-24	6	7
Profit After Adjustments	4040	6510	7317	5602	8606	8721	10120	11057	11145	13499	14851	15102
Adjusted Earnings Per Share	14.5	23.2	26	19.9	30.2	31.4	37.3	40.7	41	49.7	54.7	55.7

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	35%	14%	18%	16%
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	33.09	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	22.34	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	34.28	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	49.4	4.37	15.35	13.2	12.97	5.54	14.89
PAT Growth(%)	66.64	60.9	12.2	-23.29	53.6	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	119.43	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

#	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023
Promoter	60.33	60.33	60.33	60.33	60.72	60.72	60.72	60.72	60.81	60.81
FII	24.14	23.22	22.3	20.43	18.97	17.91	17.17	18.29	18.92	18.98
DII	10.56	11.35	12.48	13.75	14.7	15.56	16.54	15.88	15.3	15.35
Public	4.97	5.09	4.88	5.48	5.62	5.82	5.57	5.12	4.97	4.85
Others	0	0	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100	100	100

#	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023
Promoter	163.72	163.72	163.72	163.72	164.76	164.76	164.76	164.76	165.03	165.03
FII	65.51	63.02	60.52	55.44	51.48	48.59	46.6	49.63	51.34	51.51
DII	28.66	30.81	33.88	37.32	39.89	42.22	44.88	43.08	41.52	41.67
Public	13.48	13.82	13.25	14.88	15.24	15.79	15.12	13.89	13.47	13.16
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 4.9 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.