HCL Infosystems Limited (HCL.INSYS) AI Stock Analysis

• Market Cap: ₹4.75B
• Dividend Yield: N/A
• Average Volume (3M): 34.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: -14.71%
• EPS Growth: -52.55%
• Country: IN
• Employees: 147
• Sector: Technology
• Sector Strength: 97
• Industry: Technology Distributors
• EPS (TTM): -0.14
• Shares Outstanding: 329,209,930
• 10 Day Avg. Volume: 42,416
• 30 Day Avg. Volume: 34,020
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹16.00
• Price Target Upside: 10.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ₹16.00 ▲(10.96% Upside)

HCL Infosystems Limited's stock score is primarily impacted by its poor financial performance, characterized by declining revenues and a heavily leveraged balance sheet. Technical analysis suggests some bearish signals, while the company's valuation is unfavorable due to its negative P/E ratio and lack of dividends. These factors collectively contribute to a low overall stock score.

HCL Infosystems Limited Business Overview & Revenue Model

Company Description

HCL Infosystems Limited (HCL.INSYS) is an India-based information technology services and solutions company. It operates in various segments, including hardware products and solutions, distribution of technology, and learning services. The company offers a range of services, such as system integration, managed services, and enterprise application services, targeting various sectors like government, education, and healthcare. HCL Infosystems is renowned for its extensive distribution network and its strategic partnerships with leading global technology brands.

How the Company Makes Money

HCL Infosystems makes money through multiple revenue streams. Primarily, it earns revenue from the sale of hardware products and solutions, including IT infrastructure and office automation products. Additionally, the company generates income from its distribution services, acting as a channel partner for numerous technology companies, which involves the sale and distribution of IT and consumer electronics products. Another significant revenue stream is its services business, which includes system integration, managed services, and enterprise application services. HCL Infosystems also benefits from strategic partnerships with global technology leaders, allowing it to offer a broad portfolio of products and services to its clients. These partnerships enhance its market reach and add value to its offerings, contributing to its overall earnings.

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. While gross profit margins have marginal improvements, the company's overall financial health is compromised by continuous losses and negative equity, posing substantial risks to solvency and liquidity.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	246.10M	321.73M	314.10M	694.40M	3.53B
Gross Profit	177.20M	188.77M	119.70M	214.30M	283.00M
EBITDA	-204.70M	-137.14M	-341.50M	429.80M	-1.35B
Net Income	-211.10M	-158.74M	-387.94M	245.20M	-1.97B
Balance Sheet
Total Assets	4.33B	4.56B	5.06B	4.91B	6.49B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.42B	2.29B	1.19B	391.30M
Total Debt	3.55B	3.55B	3.55B	4.14B	5.38B
Total Liabilities	7.24B	7.25B	7.59B	7.06B	8.89B
Stockholders Equity	-2.91B	-2.69B	-2.53B	-2.15B	-2.40B
Cash Flow
Free Cash Flow	-285.10M	-363.69M	731.37M	1.00B	-151.70M
Operating Cash Flow	-282.10M	-361.79M	735.62M	1.01B	-147.50M
Investing Cash Flow	229.00M	307.79M	-152.02M	207.80M	204.40M
Financing Cash Flow	-1.70M	-3.73M	-618.85M	-1.39B	-221.70M

HCL Infosystems Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCL.INSYS, the sentiment is Negative. The current price of 14.42 is below the 20-day moving average (MA) of 15.61, below the 50-day MA of 16.53, and below the 200-day MA of 15.59, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 31.40 is Neutral, neither overbought nor oversold. The STOCH value of 36.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HCL.INSYS.

HCL Infosystems Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSPIRISYS	69 Neutral	₹4.16B	11.76		―	-27.51%	278.69%
DCI	65 Neutral	₹3.37B	21.06		―	20.57%	10.91%
Sector *	61 Neutral	$36.32B	7.12	-7.26%	1.97%	7.79%	-9.36%
DIGISPICE	52 Neutral	₹5.10B	42.88		―	-20.26%	-424.23%
HCL.INSYS	41 Neutral	₹4.75B	―		―	-14.71%	-52.55%