{"id":55165,"date":"2025-04-15T12:58:49","date_gmt":"2025-04-15T07:28:49","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=55165"},"modified":"2025-04-15T12:58:51","modified_gmt":"2025-04-15T07:28:51","slug":"hcl-share-price-analysis-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/hcl-share-price-analysis-all-you-need-to-know\/","title":{"rendered":"\u00a0HCL Share Price Analysis: All You Need to Know"},"content":{"rendered":"
<\/div>\n

HCL Technologies is India\u2019s third-largest IT services company in India by both revenue and market capitalization, after TCS and Infosys. Their performances are closely monitored by investors to predict future trends in the Indian IT space and the overall performance of the sector. <\/p>\n\n\n\n

Despite the volatility in the market, HCL share price has more than doubled in the last 5 years, comfortably outperforming larger peers like TCS and Infosys. \u20b91 invested in HCL share price on 3rd April 2020 is now worth \u20b93.78 on 1st April 2025 (excluding dividends), compared to \u20b92.15 in TCS and \u20b92.63 in Infosys. <\/p>\n\n\n\n

In this article, we will analyze HCL share price and its future growth potential. So, let\u2019s dive in. <\/p>\n\n\n\n

Brief Overview of HCL Technologies <\/h2>\n\n\n\n

HCL Technologies is a global<\/a> IT services and consulting company headquartered in Noida, and was founded by Shiv Nadar in 1976. The company did its IPO in 1999 and currently offers a wide range of services, including software development, cloud computing, cybersecurity, Gen AI, and digital transformation. <\/p>\n\n\n\n

The company\u2019s business is divided into four major segments:<\/p>\n\n\n\n

Engineering & R&D Services<\/strong>: This segment includes product engineering, IoT, and industry 4.0 solutions.<\/p>\n\n\n\n

IT and Business Services<\/strong>: Under this segment, the company offers a comprehensive suite of digital transformation solutions.<\/p>\n\n\n\n

Digital Business Services<\/strong>: Under this segment, the company offers digital consulting, custom application services, application management services, and many more enterprise-specific solutions on next-gen operating model transformation.<\/p>\n\n\n\n

Digital Foundation Services<\/strong>: Under this segment, the company offers digital transformation journeys to enterprises, offering next-gen AI and hyper-automation-led infrastructure services and digital solutions.<\/p>\n\n\n\n

Digital Process Operations: <\/strong>Under this segment, the company helps enterprises to revolutionize customer experiences, modernize the business value chain end-to-end, unlock business capital by leveraging modern technologies. <\/p>\n\n\n\n

HCL Technologies Management Team<\/h2>\n\n\n\n

Mr. C Vijaykumar<\/strong> is the CEO and Managing Director of HCL Technologies. He joined the company in 1990 as an R&D Engineer and progressed through various roles and responsibilities. In 2016, he became the Chief Operating Officer, and in the same year, he was promoted to CEO of the company. Mr. Vijaykumar holds a bachelor\u2019s degree in electrical and electronics engineering.<\/p>\n\n\n\n

Mr. Ajay Bahl<\/strong> and Mr. Anil Ganjoo<\/strong>, are both Chief Growth Officers for the American region and look after different industries. Both are seasoned leaders with deep domain knowledge and have been with HCL Technologies for more than 25 years. <\/p>\n\n\n\n

Mr. Ashis Kumar Gupta<\/strong> is the Chief Growth Officer for the European and African regions and looks after diversified industries. He joined the company in 1998 and did his MBA from IIM Calcutta and B.Tech in Mechanical Engineering. <\/p>\n\n\n\n

Mr. Shiv Walia <\/strong>is the Chief Financial Officer, who began his professional career with HCL in 1993 and has over three decades of experience across geographies and businesses through multiple business cycles.<\/p>\n\n\n\n

Mr. Ramchandran Sundararajan<\/strong> is the Chief People Officer at HCL Technologies.<\/p>\n\n\n\n

HCL Technologies Shareholding Pattern<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

In the domestic institution segment, mutual funds<\/a> hold an 8.19% stake in the company, and LIC holds a 4.52% stake. <\/p>\n\n\n\n

HCL Technologies Financials<\/h2>\n\n\n\n

Revenue From Operations<\/h3>\n\n\n\n

In FY24, the company\u2019s revenue from operations increased by 8.3% on a year-on-year basis to \u20b9109,913 crore from \u20b9101,456 crore in FY23. <\/p>\n\n\n\n

And between April 2024 and December 2024 (9MFY25), it increased by 6.6% to \u20b986,809 crores from \u20b981,414 crore reported in 9MFY24. <\/p>\n\n\n\n

Diving deep into the revenue by business segment and geographical mix, we can see that HCL technology is earning a major part of its revenue from IT & Business Services and from the US region. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Revenue by Business Segment<\/h3>\n\n\n\n
Segment<\/strong><\/td>FY23 (\u20b9 cr)<\/strong><\/td>FY24 (\u20b9 cr)<\/strong><\/td>9MFY25 (\u20b9 cr)<\/strong><\/td>9MFY24 (\u20b9 cr)<\/strong><\/td><\/tr>
IT and Business Services<\/strong><\/td>74,015<\/td>81,148<\/td>64,252<\/td>59,970<\/td><\/tr>
Engineering and R&D services<\/strong><\/td>16,802<\/td>17,581<\/td>13,798<\/td>13,058<\/td><\/tr>
HCL Software<\/strong><\/td>11,109<\/td>11,692<\/td>8,670<\/td>9,041<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Geographical Mix<\/h3>\n\n\n\n
Region<\/strong><\/td>FY24 (\u20b9 cr)<\/strong><\/td>FY24 (\u20b9 cr)<\/strong><\/td><\/tr>
Americas<\/strong><\/td>63,435<\/td>57.7%<\/td><\/tr>
Europe<\/strong><\/td>29,270<\/td>26.6%<\/td><\/tr>
Africa<\/strong><\/td>3,815<\/td>3.5%<\/td><\/tr>
Rest of World<\/strong><\/td>13,393<\/td>12.2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Earnings Before Interest and Tax (EBIT)<\/h3>\n\n\n\n

It is also regarded as the operating income for the company. In FY24, the EBIT of the company increased to 8.3% to \u20b920,027 crores from \u20b918,483 crores in FY23. <\/p>\n\n\n\n

For 9MFY25, EBIT was \u20b915,978 crores. The EBIT margin on December 2024 was 19.5%, which improved from 17.1%, recorded in June 2024.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Net Profit<\/h3>\n\n\n\n

The net profit of the company improved by 5.7% on a year-on-year basis to \u20b915,702 crores in FY24 from \u20b914,851 crores recorded in FY23. <\/p>\n\n\n\n

For 9MFY25, the company\u2019s net profit improved by 11.73% to \u20b913,090 crores, from \u20b911,715 crores recorded in 9MFY24. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

HCL Technologies Key Metrics<\/h2>\n\n\n\n

Current Ratio: <\/strong>HCL Technology\u2019s current ratio improved marginally by 4% in FY24 to 2.6 times from 2.5 times in FY23. <\/p>\n\n\n\n

Debt-to-equity Ratio: <\/strong>The company has marginal debt on its book, which represents lease payments, hence, the debt-to-equity ratio is not applicable. At the end of FY24, it was 0.1 times, similar to what was recorded in FY23. <\/p>\n\n\n\n

Return on Equity<\/a> (ROE<\/a>): The ROE of the company improved by 6% at the end of FY24 to 29% from 27.4% recorded in FY23. <\/p>\n\n\n\n

Return on capital employed<\/strong>: ROCE<\/a> for FY24 increased to 36.6% from 34.5% in FY23. <\/p>\n\n\n\n

HCL Share Price Analysis <\/h2>\n\n\n\n

Since its IPO in 1999, HCL share price has multiplied the wealth for its investors significantly, and had done multiple bonus issues and stock split over the years. <\/p>\n\n\n\n

In the last 5 years, HCL share price rose from \u20b9455 on 17th April 2020 to \u20b91,470 on 3rd April 2025. It made an all-time high of \u20b92,012 on 10th Jan 2025. <\/p>\n\n\n\n

\"\"
Source: tradingview<\/em><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

The company has a consistent track record of paying dividends to its shareholders. In the last three financial years, it paid \u20b930 in FY25, \u20b953 in FY24, and \u20b976 in FY23. <\/p>\n\n\n\n

At the current market price of \u20b91,470, the dividend yield of HCL share price is 3.67%. And, HCL Technologies has maintained a very high dividend payout ratio in the last three financial years. In FY25, the dividend payout ratio was 90%, meaning it is distributing 90% of the profits of the company as dividends.<\/p>\n\n\n\n

HCL Share Price Valuation Metrics<\/h2>\n\n\n\n

Earnings Per Share (EPS)<\/h3>\n\n\n\n

There has been a steady rise in the EPS<\/a> of HCL Technologies in the last five years, aiding its share price growth. <\/p>\n\n\n\n

Period<\/strong><\/td>FY20<\/strong><\/td>FY21<\/strong><\/td>FY22<\/strong><\/td>FY23<\/strong><\/td>FY24<\/strong><\/td>9MFY25<\/strong><\/td><\/tr>
EPS (\u20b9)<\/strong><\/td>40.75<\/td>41.07<\/td>49.74<\/td>54.73<\/td>57.86<\/td>48.26<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Price-to-Book Value (P\/B Ratio)<\/h3>\n\n\n\n

As of 3rd April 2025, HCL share price is trading with a price-to-book value of 5.8 times. The median 5-year Price-to-book value is 5.1 times, largely indicating the stock is trading at a slight premium compared to its book value. <\/p>\n\n\n\n

However, it has fallen down from a peak of 7.9 times, recorded on 10th Jan 2025, indicating favorable valuation. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Price-to-Equity Ratio (PE Ratio)<\/h3>\n\n\n\n

As of 3rd April 2025, HCL share price is trading at a current PE of 23.4 times. Meaning that for every \u20b91 of earnings, you are paying \u20b923.4 as a premium. The 5-year median PE of the HCL share price is 22.2 times, largely indicating a slight overvaluation compared to its historical averages.<\/p>\n\n\n\n

The stock PE has fallen from a peak 32.2 times, recorded on 10th January 2025. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

HCL Share Price Future Growth Price Potential<\/h2>\n\n\n\n

Despite being a leader in the IT and consulting space, HCL Technologies faces multiple headwinds that can affect its share price growth. Let\u2019s discuss the challenges. <\/p>\n\n\n\n

US Economic Slowdown<\/h3>\n\n\n\n

The US economy has been going through a high level of uncertainty in recent months because of the elevated level of reciprocal tariff wars. Because of this, the economy is expected to witness inflationary conditions and lower growth. Fitch Ratings is expecting a slower growth of 1.7% in 2025. <\/p>\n\n\n\n

All these factors can affect the spending ability of corporates in the US, thus affecting the revenue growth of top-tier Indian IT companies, including HCL Technologies, which generates nearly 60% of its revenue from the US markets. <\/p>\n\n\n\n

Lower Revenue Growth<\/h3>\n\n\n\n

Due to cost advantages, the revenue of Indian IT companies has grown to double digits, but now the situation has reversed in the last 2 to 3 years. The growth has been restricted to the lower single digit. HCL Technologies’ revenue growth in FY24 was 8.8%, and 9MFY25 growth was 6.6%. <\/p>\n\n\n\n

And the management, too, has given a lower year-on-year revenue growth guidance of 4.5 to 5%.<\/p>\n\n\n\n

Volatility in the US Dollar <\/h3>\n\n\n\n

A rising US dollar is always a favorable situation for Indian IT companies as they earn a major part of their revenue in USD. That means they will get more rupee value for every dollar they earn. <\/p>\n\n\n\n

However, the volatility in dollar prices can also impact their earnings growth. For instance, the USD-INR depreciated from \u20b987.22 to \u20b985.08 in the last one month, which affects the revenue growth of Indian IT companies. <\/p>\n\n\n\n

However, despite the challenges, HCL Technologies has fairly managed to expand its client base with steady order wins. In the $100 million + deal category, HCL\u2019s client count has increased from 15 in FY20 to 22 at the end of December 2024. Similarly, $50 million plus client count has increased from 31 to 53 in the same period, and $10 million plus client count has increased from 173 to 248. <\/p>\n\n\n\n

HCL Technologies has shown strong execution capabilities in different market cycles, and has been a consistent compounder. There are short term headwinds, which can make HCL share price volatile. <\/p>\n\n\n\n

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments<\/a> in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI<\/a>, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n\n\n\n

FAQ<\/h2>\n\n\n

  1. How HCL share price has performed in the last 5 years?<\/strong><\/h3>

    As of 4th April 2005, HCL share price has given 29% annualised return in the last 5 years, rising from \u20b9455 in April 2020 to \u20b91470 in April 2025.<\/p>

  2. Do HCL Technology pay dividends to shareholders?<\/strong><\/h3>

    Yes, HCL Technology has consistent track record of paying dividends and pays nearly 80 to 90% of its profits as dividends to shareholders.<\/p>


  3. Who is the CEO of HCL Technology?<\/strong>
    <\/h3>

    Mr. C Vijaykumar is the CEO and Managing Director of HCL Technologies. He joined the company in 1990 as an R&D Engineer and progressed through various roles and responsibilities.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"

    HCL Technologies is India\u2019s third-largest IT services company in India by both revenue and market capitalization, after TCS and Infosys. Their performances are closely monitored by investors to predict future trends in the Indian IT space and the overall performance of the sector.\u00a0<\/p>\n","protected":false},"author":5,"featured_media":55176,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-55165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/55165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=55165"}],"version-history":[{"count":2,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/55165\/revisions"}],"predecessor-version":[{"id":55180,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/55165\/revisions\/55180"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/55176"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=55165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=55165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=55165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}