HCL Technologies Limited (HCLTECH) AI Stock Analysis

• Market Cap: ₹4.05T
• Dividend Yield: 3.22%
• Average Volume (3M): 135.35K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.98
• Revenue Growth: 6.87%
• EPS Growth: 3.34%
• Country: IN
• Employees: 223,420
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 14.17
• Shares Outstanding: 2,713,665,000
• 10 Day Avg. Volume: 159,223
• 30 Day Avg. Volume: 135,349
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,714.20
• Price Target Upside: 14.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 64 Neutral
• Price Target: ₹1,569.00 ▲(5.14% Upside)

HCL Technologies' strong financial performance is a major positive, reflecting robust growth and stability. However, technical analysis indicates bearish momentum, posing potential near-term risks. Valuation metrics are reasonable with a supportive dividend yield.

HCL Technologies Limited Business Overview & Revenue Model

Company Description

HCL Technologies Limited (HCLTECH) is a leading global technology company headquartered in India, specializing in IT services and consulting. HCLTECH operates in various sectors, including technology, financial services, healthcare, and manufacturing, providing a range of products and services such as IT infrastructure management, software development, digital transformation solutions, and business process outsourcing. The company is known for its innovation-driven approach and a strong focus on customer-centric solutions.

How the Company Makes Money

HCL Technologies makes money primarily through its diverse range of IT services and solutions offered to a global clientele. The company's revenue model is built on key revenue streams such as application development and maintenance, infrastructure management, engineering and R&D services, digital process operations, and cybersecurity solutions. HCLTECH generates income through long-term contracts and consulting fees from clients across various industries, including banking, healthcare, and telecommunications. Additionally, strategic partnerships with technology giants and enterprises enhance its market reach and contribute to its revenue. The company's focus on digital transformation and cloud-based solutions also plays a significant role in its earnings, as businesses increasingly seek these services to enhance their operations.

HCL Technologies Limited Financial Statement Overview

Summary

HCL Technologies shows robust financial health, with strong revenue growth, profitability, and cash flow management. The balance sheet is solid with low leverage, although total liabilities need monitoring.

Income Statement

HCL Technologies has demonstrated impressive revenue growth over the years, with a steady increase from 2020 to 2025. The company's gross profit and net profit margins are robust, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also strong, indicating effective operational performance. The positive revenue growth trajectory and consistent profitability highlight the company's strong market position and capability to generate value.

Balance Sheet

The balance sheet of HCL Technologies shows a solid equity base with increasing stockholders' equity over the years. The debt-to-equity ratio is low, suggesting a conservative leverage approach and financial stability. The equity ratio is favorable, indicating a healthy proportion of assets financed by equity. However, the relatively high level of total liabilities warrants attention to manage potential risks effectively. Overall, the company maintains a strong financial foundation with manageable leverage.

Cash Flow

HCL Technologies exhibits strong cash flow generation, with consistent free cash flow over the years. The operating cash flow to net income ratio and free cash flow to net income ratio are healthy, suggesting effective cash management and operational efficiency. The steady growth in free cash flow reflects the company's ability to generate cash internally to support investment and financing activities. The positive cash flow dynamics contribute to the company's financial flexibility and stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.17T	1.17T	1.10T	1.01T	856.51B	753.79B
Gross Profit	340.65B	482.72B	446.36B	431.34B	381.15B	337.60B
EBITDA	268.84B	279.89B	256.93B	239.86B	215.96B	208.40B
Net Income	173.12B	173.90B	157.02B	148.51B	134.99B	111.45B
Balance Sheet
Total Assets	1.05T	1.05T	997.15B	934.01B	892.26B	863.15B
Cash, Cash Equivalents and Short-Term Investments	287.39B	287.39B	271.72B	201.01B	189.17B	156.76B
Total Debt	62.79B	62.79B	57.66B	47.81B	63.56B	65.09B
Total Liabilities	358.64B	358.64B	315.05B	280.04B	270.89B	261.46B
Stockholders Equity	696.10B	696.10B	682.02B	654.05B	620.46B	600.08B
Cash Flow
Free Cash Flow	211.85B	224.24B	214.00B	163.48B	152.55B	177.14B
Operating Cash Flow	222.91B	235.32B	224.48B	180.09B	169.00B	196.18B
Investing Cash Flow	-49.72B	-49.14B	-67.23B	-39.31B	14.77B	-57.30B
Financing Cash Flow	-185.47B	-185.61B	-154.64B	-158.81B	-145.08B	-111.92B

HCL Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1492.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCLTECH, the sentiment is Neutral. The current price of 1492.25 is above the 20-day moving average (MA) of 1481.95, below the 50-day MA of 1573.56, and below the 200-day MA of 1652.43, indicating a neutral trend. The MACD of -17.64 indicates Negative momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 49.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HCLTECH.

HCL Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTIM	76 Outperform	₹1.53T	33.21		2.13%	7.64%	3.35%
WIPRO	74 Outperform	₹2.64T	19.71		4.36%	0.41%	20.30%
INFY	71 Outperform	₹6.36T	23.28		2.81%	7.03%	2.21%
TCS	68 Neutral	₹11.42T	23.06		3.71%	4.92%	5.63%
HCLTECH	64 Neutral	₹4.05T	24.00		3.22%	6.87%	3.34%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
TECHM	55 Neutral	₹1.47T	29.74		3.00%	2.88%	79.99%

HCL Technologies Limited Corporate Events

HCL Technologies Publishes AGM Notice and Annual Report

HCL Technologies Limited announced the publication of a newspaper advertisement regarding the dispatch of the Notice of the 33rd Annual General Meeting and the Annual Report for FY2024-25 to its shareholders. This disclosure, made in compliance with SEBI Listing Regulations, highlights the company’s commitment to transparency and communication with its stakeholders, potentially reinforcing its industry position and stakeholder trust.

HCL Technologies Releases Conference Call Recording Post Financial Results

HCL Technologies Limited has uploaded the audio recording of its conference call held on July 14, 2025, following the announcement of its financial results for the quarter ended June 30, 2025, on its website. This move ensures transparency and provides stakeholders with easy access to the company’s financial discussions, potentially impacting investor confidence and market positioning.

HCL Technologies to Engage with Investors at UK Conference

HCL Technologies Limited announced its participation in an upcoming investor conference in the United Kingdom, scheduled for July 16-17, 2025. The event, hosted by Motilal Oswal, will involve one-on-one and group meetings with investors, although no unpublished price-sensitive information will be disclosed. This participation underscores HCL’s ongoing efforts to engage with investors and maintain transparency in its operations.

HCLTech and AMD Forge Strategic Alliance for Digital Transformation

HCL Technologies Limited has announced a strategic alliance with AMD to accelerate enterprise digital transformation through advanced AI, digital, and cloud solutions. This collaboration aims to create a robust digital ecosystem by co-investing in innovation labs and training programs, enhancing operational efficiency and unlocking new business opportunities. The partnership will establish joint development centers to test advanced technologies and ensure enterprises are equipped to navigate the evolving digital landscape, ultimately driving long-term growth and innovation across multiple industries.