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HCL Infosystems Limited (IN:HCL.INSYS)
:HCL.INSYS
India Market
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HCL Infosystems Limited (HCL.INSYS) AI Stock Analysis

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IN:HCL.INSYS

HCL Infosystems Limited

(HCL.INSYS)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
₹14.50
▼(-3.85% Downside)
HCL Infosystems Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profitability, and a heavily leveraged balance sheet. The technical analysis indicates a bearish trend, further weighing down the score. The negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

HCL Infosystems Limited (HCL.INSYS) vs. iShares MSCI India ETF (INDA)

HCL Infosystems Limited Business Overview & Revenue Model

Company DescriptionHCL Infosystems Limited is a leading provider of IT services and solutions in India, specializing in system integration, IT infrastructure management, and distribution of technology products. The company operates in various sectors including telecommunications, healthcare, and education, offering a wide range of products such as hardware, software, and IT services that cater to businesses and government organizations. HCL Infosystems is known for its expertise in delivering comprehensive technology solutions that enhance operational efficiencies and drive digital transformation.
How the Company Makes MoneyHCL Infosystems generates revenue primarily through its diverse portfolio of services and products. The company's key revenue streams include system integration services, which involve designing and implementing IT solutions tailored for clients, and IT infrastructure management services that help businesses manage their IT resources efficiently. Additionally, the company earns income from the distribution of technology products, where it acts as a reseller for various leading technology brands. Significant partnerships with global technology firms enhance its offerings and market reach, contributing to its earnings. The company also benefits from long-term contracts with government and corporate clients, providing a steady source of revenue.

HCL Infosystems Limited Financial Statement Overview

Summary
HCL Infosystems Limited is facing significant financial challenges, with declining revenues, negative profitability margins, and a heavily leveraged balance sheet. The company's financial health is compromised by continuous losses and negative equity, posing substantial risks to solvency and liquidity. While there are marginal improvements in gross profit margins, the overall financial trajectory is concerning.
Income Statement
20
Very Negative
HCL Infosystems Limited has experienced a significant decline in revenue over the past few years, with a sharp drop from 18.15 billion to 246 million by 2025. The gross profit margin is relatively high at 72% for 2025, indicating effective cost of goods sold management. However, the net profit margin is negative, reflecting ongoing net losses. EBIT and EBITDA margins are also deeply negative, illustrating operational challenges. The revenue growth rate has been negative, indicating a declining sales trajectory, which poses a significant concern for future profitability.
Balance Sheet
15
Very Negative
The company exhibits a highly leveraged balance sheet with a negative stockholders' equity of -2.91 billion as of 2025, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, but substantial debts highlight financial risks. Return on Equity (ROE) cannot be calculated with negative equity, and the equity ratio is negative, signifying an alarming financial position. The high level of debt relative to assets suggests potential solvency issues.
Cash Flow
25
Negative
Cash flows have been under pressure, with negative operating cash flow of -282 million in 2025, indicating operational cash generation challenges. Free cash flow has also been negative, with a decline from previous years, reflecting issues in cash management. The operating cash flow to net income and free cash flow to net income ratios are negative, suggesting inefficiencies in converting income into cash. However, some positive cash flow from investing activities offers slight relief.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue241.70M246.10M321.73M314.10M694.40M3.53B
Gross Profit157.70M177.20M188.77M-82.40M-44.70M283.00M
EBITDA-209.00M-204.70M-137.14M-367.56M429.80M-1.35B
Net Income-214.90M-211.10M-158.74M-387.94M245.20M-1.97B
Balance Sheet
Total Assets0.004.33B4.56B5.06B4.91B6.49B
Cash, Cash Equivalents and Short-Term Investments2.01B2.01B1.42B2.25B1.60B391.30M
Total Debt0.003.55B3.55B3.55B4.14B5.38B
Total Liabilities2.91B7.24B7.25B7.59B7.06B8.89B
Stockholders Equity-2.91B-2.91B-2.69B-2.53B-2.15B-2.40B
Cash Flow
Free Cash Flow0.00-285.10M-363.69M731.37M1.00B-151.70M
Operating Cash Flow0.00-282.10M-361.79M735.62M1.01B-147.50M
Investing Cash Flow0.00229.00M307.79M-152.02M207.80M204.40M
Financing Cash Flow0.00-1.70M-3.73M-618.85M-1.39B-221.70M

HCL Infosystems Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.08
Price Trends
50DMA
15.24
Negative
100DMA
15.98
Negative
200DMA
15.16
Negative
Market Momentum
MACD
-0.11
Positive
RSI
46.78
Neutral
STOCH
18.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCL.INSYS, the sentiment is Neutral. The current price of 15.08 is below the 20-day moving average (MA) of 15.16, below the 50-day MA of 15.24, and below the 200-day MA of 15.16, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 18.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HCL.INSYS.

HCL Infosystems Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
₹3.98B22.3220.57%10.91%
69
Neutral
₹3.64B10.28-27.51%278.69%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
₹6.23B42.885.39%-195.84%
41
Neutral
₹4.96B-14.71%-52.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:HCL.INSYS
HCL Infosystems Limited
15.08
-2.45
-13.98%
IN:COMPINFO
Compuage Infocom Ltd
1.85
-1.12
-37.71%
IN:DCI
Dc Infotech And Communication Ltd
248.85
-135.35
-35.23%
IN:DIGISPICE
DiGiSPICE Technologies Ltd.
26.59
-4.79
-15.26%
IN:FCSSOFT
FCS Software Solutions Limited
2.11
-1.21
-36.45%
IN:INSPIRISYS
lnspirisys Solutions Limited
91.76
-20.59
-18.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 10, 2025